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A D A P T A B I L I T Y T H R O U G H
ANNUAL REPORT 2020/21
ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
On behalf of the Accounting Authority and in terms
of Section 65 of the Public Finance Management Act,
1 of 1999, I take great pleasure in presenting the
Energy and Water Sector Education and Training
Authority (EWSETA) Annual Report for the 2020/21
financial period to the Minister of Higher Education,
Science and Innovation, Dr Blade Nzimande.
The report reflects the overall performance of
the EWSETA in pursuit of its mandate as well as its
contributions, with partners and stakeholders, to skills
development and training in South Africa’s critically
important energy and water sectors.
The Auditor-General of South Africa audited the
performance information and annual financial
statements and the Accounting Authority endorsed
the report based on the assurance of accuracy by the
EWSETA management and internal audit function.
The EWSETA remains fully committed, in collaboration
with the Department of Higher Education and
Training, to implementing the outcomes of the NSDP
2030 for greater impact in skills development in two
sectors that are critical to South Africa’s economic
and societal well-being.
Dr Limakatso Moorosi
EWSETA Accounting Authority Chairperson
31 July 2021
The real value added by SETAs is their understanding
of labour market issues in their respective industrial and
economic sectors. SETAs must ensure that they are backed by employers and
workers, acknowledged as credible and authoritative in skills development with the
ability to create interventions and shape solutions that
address skills needs. SETAs must become recognised experts in relation to skills
demand within their sectors.“
Doctor Blade Nzimande,Minister of Higher Education,
Science and Innovation
A d a p t a b i l i t y t h r o u g h
2020 will go down in history as the year where the
world was thrown into a state of disarray as a result
of the COVID-19 pandemic that continues to grip
human society as this report is being finalised.
It was a year where a ‘new normal’ was the only
option. In this, our 2020/21 Annual Report, the
EWSETA overviews and celebrates the manner in
which EWSETA’s Accounting Authority, management
and staff responded to the many challenges that the
pandemic brought with it.
We would like to take this opportunity to thank our
Energy and Water stakeholders for their support,
understanding and patience throughout. To those
who have fallen victim to COVID-19 and have
recovered, we remain in awe of your courage and
strength and to all who have lost loved ones be
they family or friend, we offer you our sincerest
condolences and these words of encouragement
from Helen Keller “What we once enjoyed and
loved we can never lose, for all that we love deeply
becomes part of us.”
PART A: GENERAL INFORMATION
Entity General Information .................................. 4
Abbreviations and Acronyms .............................. 4
Foreword by the Chairperson ............................. 6
Chief Executive Officer’s Overview ................... 8
Statement of Responsibility and Confirmation
of Accuracy for the Annual Report ................... 14
Strategic Overview ................................................. 15
Legislative and Other Mandates ......................... 16
Organisational Structure ...................................... 18
PART B: PERFORMANCE INFORMATION
Statement of Responsibility for
Performance Information .................................... 22
Auditor-General’s Report:
Predetermined Objectives ................................... 22
Situational Analysis ................................................. 23
Progress Towards Achievement of
Institutional Impacts and Outcomes ................ 24
Institutional Programme
Performance Information .................................... 26
Outcomes, Outputs, Output Indicators,
Targets and Actual Achievements ..................... 27
Overview by the Corporate
Services Executive.................................................. 29
Overview by the Planning, Reporting
and Monitoring Executive .................................... 35
Strategy to Overcome Areas of
Under Performance ............................................... 46
Linking Performance with Budgets ................... 47
Progress on Institutional Response
to the COVID-19 Pandemic ................................ 48
Revenue Collection ............................................... 49
Capital Investment ................................................. 49
PART C: GOVERNANCE
Composition of the Accounting
Authority – Appointed 1 April 2020 ................... 52
Governance Information...................................... 54
Accounting Authority and Committee
Meetings: Record of Attendance ....................... 55
Risk Management and Compliance .................. 56
B-BBEE Compliance Performance
Information .............................................................. 59
Audit Committee Report ...................................... 60
PART D: HUMAN RESOURCES
Human Resources Report ................................... 64
Human Resources Oversight Statistics ............ 66
PART E: FINANCIAL INFORMATION
Report by the Chief Financial Officer ............... 72
Report of the Auditor-General ........................... 76
Accounting Authority’s Responsibilities
and Approval ........................................................... 81
Annual Financial Statements ............................... 82
PART F: ADDENDUM
Institutional Performance
Information Reporting ........................................ 134
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GENERAL INFORMATION
PART A
What counts in life is not the mere fact that we have lived. It is what difference we have made to the lives of others that will determine the significance of the life we lead
NELSON MANDELA
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ENTITY GENERAL INFORMATION
ABBREVIATIONS AND ACRONYMS
Registered name Energy and Water Sector Education and Training
Authority (EWSETA)
Street address Ground Floor Building B, Sunnyside Office Park,
32 Princess of Wales Terrace, Parktown,
Johannesburg, 2198, South Africa
Postal address PO Box 5983, Johannesburg, 2000
Telephone +27 (0)11 274 4700
Fax +27 (0)11 484 8953 / +27 (0)11 484 1078
Email [email protected]
Website http://www.ewseta.org.za
RP RP126/2021
ISBN 978-0-621-49411-2
External Auditor Auditor-General of South Africa
Bankers First National Bank / Rand Merchant Bank /
Standard Bank
CSE Corporate Services Executive
CSIR Council for Scientific and Industrial
ResearchCUT Central University of TechnologyDG Discretionary Grant
DHET Department of Higher Education and
Training
DHSWSDepartment of Human Settlements,
Water and SanitationECSA Engineering Council of South Africa
ERRP Economic Reconstruction and
Recovery Plan
ETQA Education and Training Quality
AssuranceEXCO Executive Committee
FinRemcoFinancial and Remuneration
CommitteeFY Financial year
GRAP Generally Recognised Accounting
PracticeGSC Governance and Strategy CommitteeHEI Higher Education InstitutionHET Higher Education and Training
HRDS-SA Human Resources Development
Strategy for South Africa
IMASAIndependent Municipal Allied Trade
UnionIOPSA The Institute of Plumbing South Africa
IPAP Industrial Policy Action Plan
IRP Integrated Resource PlanJET Just Energy TransitionKOBWA Komati Basin Water AuthorityLMIS Labour Market Information SystemMEF Monitoring and Evaluation FrameworkMoU Memorandum of UnderstandingMIS Management Information System
NAMB National Artisan Moderation Body
NBI National Business InitiativeNDP National Development PlanNGP New Growth PathNGO Non-Governmental OrganisationNLPE Non-Levy Paying EmployerNPO Non-Profit Organisation
NSDP National Skills Development Plan
2030NSDS National Skills Development StrategyNUM National Union of Mineworkers
NUMSANational Union of Metalworkers of
South AfricaNWRS National Water Resource StrategyOD Organisational Design
OFO Organising Framework for
Occupations
OM Operating Model
PSET Post School Education and TrainingPIRB Plumbing Industry Registration Board
PIVOTALProfessional, Vocational, Technical
and Academic Learning
PFMA Public Financial Management Act, 1
of 1999
QAC Quality Assurance and Compliance
QACC Quality Assurance and Compliance
CommitteeQAS Quality Assurance Standard
QCTOQuality Council for Trades and
OccupationsQMR Quarterly Management Report
SACNASPSouth African Council for Natural
Science Professions
SAMWUSouth African Municipal Workers
Union
SANEA South African National Energy
Association
SANEDI South African National Energy
Development Institute
SAPVIASouth African Photovoltaic Industry
AssociationSAQA South African Qualifications Authority
SDA Skills Development Act, 97 of 1998 (as
amended)SDL Skills Development Levy
SEIFSA Steel and Engineering Industries
Federation of South Africa
SETA Sector Education and Training
AuthoritySIP Strategic Integrated ProjectsSLA Service Level AgreementSMME Small Medium Micro EnterpriseSP Strategic Plan 2020/21 – 2024/25SSP Sector Skills PlanTCTA Trans Caledon Tunnel Authority
The Minister Minister of Higher Education
Science and InnovationTUT Tshwane University of Technology
TVET Technical Vocational Education and
Training
UOT University of Technology
UP University of Pretoria
WBL Work-based Learning
WIL Work Integrated LearningWISA Water Institute of Southern AfricaWITS University of the WitwatersrandWoL War on Leaks
WPPSETWhite Paper for Post School
Education and Training
WRC Water Research Commission
WSP Workplace Skills Plan
WTE Water Trading Entity
4IR 4th Industrial RevolutionAET Adult Education and TrainingAGM Annual General MeetingAOP Annual Operational PlanAPP Annual Performance PlanAQP Assessment Quality ProviderARC Audit and Risk CommitteeATR Annual Training ReportCBO Community Based OrganisationCEO Chief Executive OfficerCET Community Education and TrainingCFO Chief Financial OfficerCOO Chief Operating Officer
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6 A N N U A L R E P O R T 2 0 2 0 / 2 1 7A N N U A L R E P O R T 2 0 2 0 / 2 1 7A d a p t a b i l i t y t h r o u g h
FOREWORD BY THE CHAIRPERSONAs evidenced by my colleagues’ observations in this year’s Annual Report, this period under review has been a time for reflection and resourcefulness, a time of forced separations and remote working, yet, in parallel, it has served as a time to bring us closer together as a cohesive entity. This period under review was the first year of the National Skills Development Plan 2030, with the Accounting Authority commencing its tenure on 1 April 2020. Owing to the pandemic and the safety regulations around it, a fair portion of my onboarding was conducted remotely, with me undergoing an induction session on 28 – 29 May 2020. This was complemented by the office of the CEO which, in collaboration with the Chairpersons of the committees that were in place in 2019/20, prepared a comprehensive handover document that aided in bringing the new members of the Accounting Authority up to speed on the status of numerous activities that were current at the time. In addition, the Chairpersons of all 21 SETAs met with the Minister of Higher Education, Science, andInnovation (the Minister), Dr Blade Nzimande, who outlined some key areas of focus for the incumbentSETA Accounting Authorities. During this period, with financial and procedural considerations in mind, the committee structures changed and were pruned from seven to the present
four, including EXCO and ARC, thereby streamlining processes and reducing the number of governance committee meetings required. The period under review also saw us implement the first year of EWSETA’s 2020/21 to 2024/25 Strategic Plan, wherein our tactic is ‘to improve economic participation’, aligning us with the five strategic pillars that underpin our mandate:• Establish a high-performance culture.• Develop a credible mechanism for identification
of skills demand and supply• Close the scarce and critical skills gap.• Intensify Continuous Professional Development
and career guidance.• Positively contribute to an inclusive economic
development. The Strategic Plan also takes into consideration provisions in the DHET SLA, including support for:• Imperatives contained within Job Summit
Agreements.• Temporary Employee and Employer Relief
Scheme as and when needed by the sector.• Centres of Specialisation and support for
International Scholarships.• World Skills South Africa.• Revitalisation of Rural and Townships Local
Economy. We will continue to focus on these critical points
during the next 12-month period.
CHALLENGES
With running the risk of repetition around the impact of COVID-19, the combination of the extended lockdown measures with the declaration of the 4-month SDL holiday impacted significantly on the roll out of our learning programmes, as service delivery in some operational areas is mostly office-based or requires travel. In addition, working remotely and isolation necessitated extensive online interaction with members of the Accounting Authority, without the opportunity to meet in person. While the communication stream was smooth, issues were addressed, solutions found, and solidarity built, working at a distance is never quite the same as the camaraderie experienced through physical proximity.
OUR SECTORS
During the ongoing lockdown, that brought with it the need to adapt to the changing lockdown levels, the energy and water sectors remain essential services and were therefore largely unaffected by lockdown measures. However, numerous smaller organisations, particularly in the energy sector, were forced to close doors, which in turn impacted on the income stream into the EWSETA during the period. This, coupled with the ongoing load shedding continues to beleaguer the energy sector and thus, the coming review period will have a strong focus on green energy solutions and Public Private Partnerships (PPPs). The past year, nevertheless, strengthened the EWSETA’s strategic relationships with key
government departments, including the DHET, Department of Minerals and Energy and the Department of Human Settlements, Water and Sanitation. We also undertook extensive work with other key sectoral stakeholders, and, through collaboration and strategising, we addressed several issues that will see daylight and implementation in the new period, with a strong focus on preparation for what needs to be achieved in the strategic period leading up to March 2025. During the period under review, the new CEO, Mpho Mookapele was appointed, bringing a new energy to the EWSETA. Mpho is dedicated to youth development and is passionate about the public sector. Her young, dynamic and driven outlook saw her competently steer the EWSETA through this tumultuous period, displaying clear evidence of strong and ethical qualities that make her a respected leader. We are fully confident that the organisation is in the hands of the right person to realise our strategic goals and take us into the next period of our evolution, competently and with vision.
ACKNOWLEDGEMENTS
I appreciate the valued input and support from the Minister, his guidance and feedback that has kept the EWSETA on course. My sincerest thanks and gratitude to the Accounting Authority and all sub-committees for their expert guidance and contributions in finding solutions and forging a way forward. I also acknowledge and thank the Executive team for flying the flag
high in the face of extreme disruption, change and
challenges. Thank you for keeping our sights on the
goal, the vision in our minds and giving us all cause
to celebrate our successes when achieved.
To all the staff at EWSETA who rose to the challenge,
I commend you all on your commitment and
dedication, your unwavering determination to
see us through this trying time and last, but by no
means least, I acknowledge and thank all our sector
stakeholders who partnered with and worked
closely with EWSETA during this period under
review.
CONCLUSION
While we have come through an extremely difficult period this past year, it has also been a period of growth and development, of digging deep in trying circumstances and coming up with solutions and meeting challenges head-on. This period has furnished all EWSETA staff with skills, knowledge and experience that will stand us all in good stead for the future. I am honoured to be a part of such a tight-knit team of individuals who pulled together to overcome our challenges. I look forward to working with all stakeholders as EWSETA seeks to achieve its strategic goals in both the medium- and long-term.
Dr Limakatso MoorosiChairperson31 July 2021
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8 A N N U A L R E P O R T 2 0 2 0 / 2 1 9A N N U A L R E P O R T 2 0 2 0 / 2 1 9A d a p t a b i l i t y t h r o u g h
CHIEF EXECUTIVE OFFICER’S OVERVIEWReflecting on 2020/21 is impossible without
referencing COVID-19. The pandemic has impacted
every sector of business across the globe, and the
EWSETA is no exception. While our systems and
processes were disrupted and service delivery had
to continue under the unexpected lockdown, we
were also required to adapt and pivot to ensure
the continued smooth running of the SETA and
continual skills development for the sector.
Many of the adaptations and procedural changes
we encountered were unavoidable. In fact, they
brought about a forced change which resulted in
the SETA drawing on a level of resourcefulness
that was not previously tapped into. The upside
of the unexpected rapid change is that the SETA
emerged a stronger, more cohesive entity, better
prepared to face adversity.
OVERVIEW OF THE PAST PERIOD
It behoved on me to come to terms with
recognising that in this unfamiliar climate, change
was inevitable, and therefore, understanding the
change, accepting it, and planning around it was
a priority. It was important that the organisation
was aware that we had to rapidly move and
adapt to the new normal. That there were going
to be unforeseen and unexpected changes and
adaptation was to be the order of the day.
Constant communication and clarity became the
much-needed oil to ensure the organisation keeps
moving through the turbulence of change and
that no one is left behind. This required improved
communication internally and externally and
increased channels of communication. Creativity
and innovation in a very legislated environment
the SETA operates in became critical. Due to the
unfamiliar waters chartered, we were aware that
not all solutions initiated would work and it was
important to accept this and move in order to stay
on track. This was a time to introduce new processes
and/or procedures to ensure business continuity.
In collaboration with the sector, we needed to
find solutions to ensure that we capacitate the
energy and the water sector with the required
skills within a rapidly shifting environment.
During the 2020/21 financial period, the
organisation experienced a number of capacity
constraints due to loss of critical staff. This brought
about an additional challenge whilst navigating
the unprecedent change. As the organisation was
in the process of an organisational design (OD)
review process, recruitment of new talent had to
be halted to allow the OD review process to be
concluded and this put more pressure on human
capacity. This required short term recruitment in
certain roles and shared responsibilities amongst
existing capacity.
This led to the discovery of skillsets and talents
within the organisation, elimination of existing
silos and more inter-departmental collaboration
that led to operational efficiencies. There was an
incredible sense of ownership and involvement,
with many people volunteering suggestions and
input, all keen and eager to see us through the
stormy waters.
ACHIEVEMENTS FOR PERIOD UNDER REVIEW
In the midst of the challenges experienced by the
PSET system, EWSETA recorded a performance
achievement against the set APP target of 68%.
This represents a 1% decrease on the prior year’s
performance.
The financial year noted improved sector
participation in skills development as a result
of sector engagements in prior years. The
implementation of the new partnership model
saw strategic partnerships with employers and
skills development providers being established
and contributing to meeting EWSETA objectives.
The levy payer base increased by 14 employers
and a 19% increase in the submission of WSPs
and ATRs on the previous financial period is to
be celebrated as this will result in improved and
credible planning data.
Increased focus was placed on the Just Energy
Transition and, through partnering with local and
international partners, we sought to identify skills
development priorities that will ensure no one is
left behind as the Just Energy Transition plays out
in the country.
It was in this context that we partnered with
the Department of Science and Innovation, the
South African Institute of International Affairs
(SAIIA) and other private and public partners
to drive research on the readiness of TVET
colleges to drive skills development in support
of the Hydrogen Economy in South Africa, very
specifically along the Hydrogen Valley. As a
consortium, we submitted a proposal for funding
to the UKPACT and were successful in sourcing
funding for the proposed research.
The 2020/21 financial period saw the launch of
our flagship programme in partnership with Wits
Business School to develop women for executive
roles in the energy and water sector. In March 2021,
a group of 19 women were funded by EWSETA to
go through an Executive Development Programme
at Wits Business School. Whilst this is only a small
step in the right direction, it is nevertheless a
critical one. Year-on-year, our Sector Skills Plan
has noted that the sector is dominated by men,
particularly in managerial positions. It is important
that women in these sectors are capacitated with
the relevant executive development skills that will
see more women in leadership roles and close the
gender gap.
The SDL holiday impacted income during the period
and the EWSETA received skills development levies
totalling R209 million, whereas in the previous
period, an amount of R308 million was received.
This resulted in decreased DG and mandatory
grant expenditure, that in turn impacted critical
reskilling and upskilling.
The control environment in place at the EWSETA
has seen us maintain an unqualified audit opinion
from the Auditor-General of South Africa. Even
though a number of challenges were experienced
in this reporting period, the SETA is committed to
implementing the AGSA recommendations and
control improvements remain a high priority.
OVERCOMING CHALLENGES IN A DISRUPTIVE ENVIRONMENT
Financial and human resource challenges were
carefully managed to ensure minimal impact on
the organisation’s ability to meet its set objectives.
In view of a high-performance culture, the SETA is
required to be customer centric, to have efficient
and effective operation processes, relevant and
appropriate capabilities and adequate funding.
The EWSETA Accounting Authority is charged with
The SETA’s ability to flex and adapt was evident in the way the organisation successfully transitioned from being office-based to working from home. Sterling work by the ICT Department through the roll-out of ICT tools across the organisation made an important contribution to this
The period under review saw the SETA play an important role in determining the critical skills required by the energy and the water sector within the context of a pandemic. Working with the relevant sector associations, the SETA developed a list of skills in demand to drive economic growth. These skills sets have been identified as critical energy and water skills embedded in the Economic Recovery and Reconstruction Plan (ERRP) skills strategy to ensure the ERRP objectives are achieved
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10 A N N U A L R E P O R T 2 0 2 0 / 2 1 11A N N U A L R E P O R T 2 0 2 0 / 2 1 11A d a p t a b i l i t y t h r o u g h
approving an organisational design review process
to ensure that the financial and capacity challenges
are resolved.
To overcome the financial constraints brought
about by the regulations of the SDL holiday,
the SETA’s planned performance was adjusted
to ensure that realistic and achievable targets
were set for the 2020/21 period. This was
achieved through a review of the 2020/21 annual
performance plan and the reprioritisation of
funds to critical skills development interventions
within the organisation’s financial means.
This past year also saw capacitation challenges
with the departure in December 2021 of our Chief
Operations Officer, Mr Ineeleng Molete. This is a
role that is responsible for the implementation of
projects and quality assurance, and his departure
left a significant void in the core business areas.
Due to the organisation review process, no
significant appointments were made during
the year where certain roles and capabilities
were still being assessed. This meant the role
remained vacant for the last quarter of the year.
To close the capacity gaps, the SETA partnered
with industry subject matter experts to ensure
mitigation of potential risks that could materialise
due to vacancies in the operations department.
As I took on the role as Chief Executive Officer after
serving as a Chief Financial Officer, there was a
vacancy at executive level in the finance department.
As required per the Public Finance Management
Act, a Chief Financial Officer was appointed in
March 2021. The organisation welcomes Ms Robyn
Vilakazi who took on role at a critical time to close
of the 2020/21 financial period.
One major challenge experienced was the inability
to ensure consistent continuity of skills development
interventions during the lockdown period. Where
virtual learning could not be implemented by
providers, this resulted in completion delays. The
knock-on effect on performance resulted in 32%
targets not being achieved.
To ensure projects continuity, the SETA reviewed
the current project monitoring processes to
allow virtual learner induction and project due
diligence to be conducted. These interventions
meant reduced risk of spreading COVID-19 and
ensuring that the SETA continues with project
implementation.
Whilst the pandemic has affected the PSET system,
the organisation was agile enough to adapt to
the forced rapid change to ensure that skills
development is not halted during the pandemic.
The challenge of timely certification of learners
was magnified during the financial period. The
backlog of certification reached unacceptable
levels. To clear the backlog, a partnership with
the National Artisan Moderating Body and
Quality Council for Trades and Occupations was
strengthened to ensure effective finalisation of
the certification process. Additional capacity was
sourced through the appointment of interns and
contact employees to speed up the process of
clearing the backlog. We are confident that the
certification backlog will be cleared in the first
half of the new financial year.
FINANCIAL OUTLOOK
EWSETA has been one of the SETAs with the
lowest revenue for a number of years. With a
critical mandate of capacitating the energy and
water sector, it is important that the organisation
has adequate financial resources to carry out this
mandate. It is important that within the limited
funding we address the skills challenges in the
sector. The following plans and approaches have
been identified to improve the financial health of
the organisation:
Intensifying the process of
identifying relevant energy
and water levy payers who
are incorrectly classified
to other industries
Strengthen local and
international strategic
partnerships and drive
co-funding of skills
development initiatives
Review of the operating
model to reduce
inefficiencies and
implement cost savings
Improved budgeting
and fund allocation and
implementation of cost
containment measures
The changes in the energy landscape arising from the
transition to clean energy brings about opportunities
to improve the financial outlook of the SETA.
IPPs are playing an increasingly important role
in the energy mix. This, and the President’s
announcement in June 2021 regarding the
increase to the licensing threshold for embedded
generation projects from 1 MW to 100 MW has
opened the playing field. It is anticipated that these
factors will result in an increase in SMMEs and a
shift to renewable energy by many companies.
Although the 2021/22 financial period may not see
a full recovery from the impact of the pandemic, the
medium to long term will see an improvement in our
financial status, more so with the implementation of
the new operational design model. The application
to National Treasury to retain surplus to the amount
of R212.8 million was approved.
The SETA reported a deficit of R134 836 for the
2020/21 period. A significant portion of the deficit
relates to the outcome of forensic investigations.
Certain assets were required to be impaired and
therefore significant impairment losses were
recorded. EWSETA is pursuing legal action to
recover some of the losses incurred.
EVENTS POST REPORTING PERIOD
There have been no material events after reporting
period that affect the financial statement.
A significant loss to the SETA was the sad and
sudden passing of our Accounting Authority
Member, Mr Ndlela Radebe, on 4 August 2021.
Since 2018, Mr Radebe has served on the
EWSETA Accounting Authority with diligence
and commitment. The SETA is grateful for his
service and contribution.
On 10 June 2021, President Cyril Ramaphosa
announced that Schedule 2 of the Electricity
Regulation Act will be amended to increase the
licensing threshold for embedded generation
projects from 1 MW to 100 MW and once
registered will be able to connect to the grid.
On 5 August 2021, Mr Senzo Mchunu was announced
as the new Minister of Water and Sanitation.
ACKNOWLEDGMENTS AND APPRECIATION
First, my gratitude to our stakeholders in the
energy and water sector who pulled together
during the pandemic to ensure skills capacitation
of the labour force. I thank the industry
associations for their meaningful engagements
to ensure that we adapted and moved with the
changes that were brought on by the pandemic.
I would like to extend my appreciation to the
Minister of Higher Education, Science, and
Innovation, Dr Blade Nzimande for entrusting us
with capacitation of the energy and water sector
and his leadership in skills development.
For their guidance and stoicism during a difficult
time, thank you to the Accounting Authority
for its strategic direction and governance that
fostered a healthy environment that is conducive
to innovation and growth. I would like to
acknowledge the Chairperson, Dr Limakatso
Moorosi and the SETA’s Accounting Authority, for
entrusting me with the responsibility to drive in
the strategic direction they envisage for the SETA.
To team EWSETA, I thank you all for your fortitude
and innovation, for your courage to step up
to the plate during an arduous time. Without
your commitment, resilience and initiative,
your enthusiasm and unfailing participation
demonstrated during the year, getting the SETA
through one of its most trying times, we would
not be here, able to report back on a successful
voyage, these past 12 months. Thank you!
And finally, my gratitude to our COO, Mr Ineeleng
Molete for his service to the organisation.
Mr Molete served the SETA for five years and his
contribution to the human capital and improved
processes in the organisation does not go
unnoticed. I wish him much success and impact
in his new role.
I look forward with eagerness to the next financial
period where much is expected from a training
authority for two critical sectors. I am confident
that EWSETA will achieve its skills development
goal and impact these sectors.
Mpho MookapeleChief Executive Officer
31 July 2021
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EMPLOYEES PER LEVEL OVER 5-YEAR PERIOD
TOTAL DISCRETIONARY GRANTS COMMITMENTS: OVER 5 FINANCIAL YEARS
DISCRETIONARY GRANTS COMMITMENTS OVER 5 YEARS
KEY PERFORMANCE STATISTICS AGAINST 5-YEAR STRATEGIC PLAN TARGETS
2016/17 2017/18 2018/19 2019/20 2020/21
Top management Senior management Professionally qualified
Skilled Semi-skilled
Five-year target
(to 31 March 2025)
Actual Achievement
as at 31 March 2021
Number of learners enrolling in
EWSETA occupations7 000 701
Number of workers participating
in learning programmes6 000 1 993
Number of CBO/NGOs/ NPOs/ SMMEs
supported with training interventions175 20
Number of career guidance events
for high school learners200 64
Number of workshops with
career development practitioners40 11
Number of new qualifications
developed per Industry needs20 2
2016/17 2017/18 2018/19 2019/20 2020/21
AET Programme 514 1 076 1 062 125 181
Apprenticeship
Programme1 231 875 1 265 193 1 059 740
1 068
892 995 353
Bursaries 25 582 25 452 19 149 915 195
Internship
Programme28 384 62 174 38 961 11 346 12 537
Learnership
Programme70 295 43 090 44 272 35 063 17 900
Trade Union - - - - 4 000
Candidacy - - - - 225
Skills Programme 26 469 32 877 17 346 9 202 6 070
Research 4 077 2 648 1 507 554 554
1 387 196 1 432 510 1 182 037 1 126 097 1 037 015
1 500 000
1 200 000
900 000
350 000
300 000
250 000
200 000
150 000
100 000
DISCRETIONARY GRANTS:REVENUE VS EXPENDITURE OVER 5 FINANCIAL YEARS
Expenditure Revenue
MANDATORY GRANTS: REVENUE VS EXPENDITURE OVER 5 FINANCIAL YEARS
Expenditure Revenue
80 000
70 000
60 000
50 000
40 000
30 000
20 000
80
70
60
50
40
30
20
10
0
41 57
1
25
24
49 48
4
14 17 19 14 14
13
13
13
03
12
59
79
72
6669
2016/17 2017/18 2018/19 2019/20 2020/21
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Establish a high-performance
culture
Positively contribute to
an inclusive economic
development
Intensify continuous
professional development
and career guidance
Close the scarce and critical
skills gap
Develop a credible
mechanism for
identification of skills
supply and demand
STRATEGIC OVERVIEW
The Energy and Water Sector Education and Training Authority (EWSETA) is one of 21 SETAs established in terms of Section 9 of the Skills Development Act (SDA), 97 of 1998, as amended, and reports to the Honourable Minister of Higher Education, Science and Innovation.
The information provided here is aligned to the
EWSETA’s new five-year strategy (2020/21 –
2024/25), of which implementation started on
1 April 2020.
MANDATE
To anticipate, build and strategically plan and
manage skills development and training needs in
the energy and water sectors as directed by the
National Skills Development Plan 2030.
VISION
To create a sustainable tomorrow today, through
skills.
MISSION
We will achieve our vision through:
• Research to determine the skills demand
• Facilitating and coordinating skills development
programmes to respond to sectoral challenges
• Driving excellence through quality assurance
• Fostering an ecosystem in energy and water that
creates inclusive economic development.
VALUES
Our values are the bedrock of our decisions,
actions, performance and interaction with all our
stakeholders. Our values drive our behaviour and
through them we create an environment conducive
to a high performance organisational culture.
Respect: A sense of value and trust towards
each other and stakeholders
Integrity: We act with honesty and integrity, not
compromising the truth
Teaming: Positively contributing and
collaborating towards the greater vision
Excellence: Striving for the best in all our
actions.
OUR STRATEGIC INTENT
The 2030 vision set out in the National
Development Plan (NDP) requires the country
to achieve high levels of economic growth and
the need to address unemployment, poverty and
inequality. It therefore calls on social partners to
work together and invest in skills development in
order to achieve the outcomes of the National
Skills Development Plan (NSDP), which is an
educated, skilled and capable workforce for
South Africa. The EWSETA will work towards
contributing to the achievement of government
To the best of my knowledge and belief, I confirm the following:
• All information and amounts disclosed in the annual report are consistent with the annual financial
statements audited by the Auditor-General.
• The annual report is complete, accurate and is free from any omissions.
• The annual report has been prepared in accordance with the guidelines on the annual report as issued by
National Treasury. The Annual Financial Statements (Part E) have been prepared in accordance with the
Generally Recognised Accounting Practice (GRAP) standards applicable to a public entity.
• The Accounting Authority is responsible for the preparation of the annual financial statements and for
the judgements made in this information. The Accounting Authority is responsible for establishing, and
implementing a system of internal controls that has been designed to provide reasonable assurance as
to the integrity and reliability of the performance information, the human resources information and the
annual financial statements.
• The external auditors are engaged to express an independent opinion on the annual financial statements.
• In our opinion, the annual report fairly reflects the operations, the performance information, the human
resources information and the financial affairs of the entity for the financial year ended 31 March 2021.
Yours faithfully
Chief Executive Officer Chairperson of the Accounting Authority
Mpho Mookapele Dr Limakatso Moorosi
31 July 2021 31 July 2021
STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT
priorities as set out in the Medium-Term Strategic
Framework (MTSF 2019 - 2024).
The EWSETA has identified the following strategic
pillars to ensure that the desired impact in the skills
development space is achieved.
It is clear that good corporate governance makes good sense. The name of the game for a company
in the 21st Century will be conform while it performs
MERVYN KING (CHAIRMAN: KING REPORT)
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The implementation of EWSETA’s strategic plan
to 31 March 2025, will be monitored to ensure
that the short-term outcomes and the intended
impact is achieved. Management will ensure
adequate resources such as finance, human
capital and infrastructure are in place to drive the
implementation of the strategy.
SCOPE
Within our scope that comprises South Africa’s
energy and water sectors, we also serve the energy
subsectors of electricity, oil and gas, nuclear and
renewable energy and the water subsectors of
collection, purification and distribution, waste and
sewage and refuse and sanitation.
LEGISLATIVE AND OTHER MANDATES
CONSTITUTIONAL MANDATE
The Constitution of the Republic of South Africa
forms the basis of an education system that
values human dignity, equality, human rights,
freedom, non-racism and non-sexism. Section
29 (1) guarantees the right to a basic education
(including adult basic education) for all and to
continued education that the state must make
progressively available and accessible. Section 22
enshrines the right of every citizen to choose their
trade, occupation or profession freely. The EWSETA
therefore has to facilitate access to education and
training for all, with a focus on trade occupational
qualifications, in the energy and water sectors.
LEGISLATIVE MANDATE
EWSETA derives its mandate from the Skills
Development Act (SDA), 97 of 1998, as amended.
Within that mandate, our key responsibilities are to:
• Develop a Sector Skills Plan (SSP) within the
framework of the National Skills Development
Plan 2030
• Implement the SSP by:
- establishing learning programmes
- approving Workplace Skills Plans (WSPs) and
Annual Training Reports (ATRs)
- allocating grants to employers, education
and skills development providers and
workers according to prescribed standards
and criteria
- monitoring the provision of education and
skills development in the sector.
• Promote learning programmes by:
- identifying workplaces for practical work
experience
- supporting the development of learning
materials
- improving facilitated learning.
• Conclude and register learning programme
agreements as required
• Perform functions delegated by Section 26 of
the Quality Council for Trades and Occupations
(QCTO)
• Collect EWSETA-allocated skills development
levies
• Liaise with the National Skills Authority (NSA) on
related policy, strategy and SSP.
The legislation, regulations and policies listed here
inform and guide our strategy and operations:
Skills Development Levies Act, 9 of 1998 (as amended 9 of 1999): • To provide for the imposition of a skills
development levy (National Qualifications
Framework Act, 67 of 2008)
• To provide for the further development,
organisation and governance of the National
Qualifications Framework (NQF)
Further Education and Training Act, 98 of 1998:• To establish a national, coordinated, further
education and training system that promotes
co-operative governance and provides
programme-based further education and
training
Public Finance Management Act, 1 of 1999:• To secure transparency, accountability
and sound management of the revenue,
expenditure, assets and liabilities of the
institutions to which the Act applies
Promotion of Access to Information Act, 2 of 2000:• To give effect to the constitutional right of
access to state-held information (Promotion
of Administrative Justice Act, 3 of 2000)
• To give effect to administrative action that is
lawful, reasonable and procedurally fair
Preferential Procurement Policy Framework Act, 5 of 2000:• To guide procurement in government where a
preference point system must be followed
White Paper for Post-School Education and Training, 2013:• To improve post-school education and training
system capacity
• To set policies that guide the DHET and
institutions for which it is responsible to contribute
to building a developmental state with a vibrant
democracy and a flourishing economy
NATIONAL STRATEGIES, POLICIES, PLANS AND FRAMEWORKS
The following national strategies, policies and plans
impact directly or indirectly on skills development in
the energy and water sectors:
• The National Development Plan (NDP):
Overarching longterm plan for South Africa to
eliminate poverty and reduce inequality by 2030
through faster and more inclusive economic
growth
• The National Skills Development Plan (NSDP)
2030: Derived from the NDP to guarantee
adequate, suitable, high-quality skills that
contribute to growth, job creation and social
development
• The Human Resource Development Strategy
for South Africa (HRDS-SA): Coherent, national
human resource development framework within
which all HRD-oriented policies operate.
• Industrial Policy Action Plans (IPAP 2): Sets out key
actions and timeframes for the implementation
of industrial policy.
• National Infrastructure Plan, including 18
Strategic Integrated Projects (SIPs): Plan to
transform the economic landscape, create
new jobs, strengthen the delivery of basic
services and support the integration of African
economies.
• New Growth Path (NGP): Series of State/
private sector partnerships to enhance growth,
employment creation and equity with a target of
5 million jobs by 2020.
• White Paper on Post-School Education and
Training: Framework for the post-school
system stakeholders that combines three major
components – education and training, skills
development and the world of work.
SECTOR-SPECIFIC FRAMEWORK REGULATIONS
The EWSETA’s operations are informed and
influenced by a number of sector-specific
framework regulations:
• The Strategic Framework for Water Services,
2003: Sets out a comprehensive approach for
the provision of water services.
• The National Water Resource Strategy (NWRS):
Provides a framework for the use, development,
conservation, management and control of water
resources.
• Water Services Act, 108 of 1997: Provides for
the rightsof-access to basic water supply and
sanitation and sets national standards and tariffs.
• National Water Act, 36 of 1998: Acknowledges
the National Government’s overall responsibility
for, authority over and use of the nation’s water
resources.
• Municipal Structures Act, 117 of 1998: Provides
for the establishment of municipalities.
• The Municipal Systems Act, 32 of 2000: Provides
for the core principles, mechanisms and
processes that enable municipalities to, socially
and economically, uplift local communities.
• Municipal Finance Management Act, 56 of
2003: Promotes good financial management to
maximise service delivery.
• Nuclear Energy Act, 46 of 1999: Provides for
the establishment of the South African Nuclear
Energy Corporation Limited.
• National Nuclear Regulator Act, 47 of 1999:
Provides for the protection of persons, property
and the environment against nuclear damage
through safety standards and regulatory
practices.
• National Energy Act, 34 of 2008: Promotes
the availability of diverse energy resources in
sustainable quantities and at affordable prices.
This plan envisions a South Africa where everyone feels free yet bounded to others; where everyone embraces their full potential, a country where opportunity is determined not by birth, but by ability, education and hard work. Realising
such a society will require transformation of the economy and focused efforts to build the country’s capabilities. To eliminate poverty and reduce inequality, the economy must grow faster and in ways that benefit all South Africans
NDP 2030
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ORGANISATIONAL STRUCTUREAs at 31 March 2021
EWSETA
ACCOUNTING
AUTHORITY
CHIEF EXECUTIVE OFFICER MPHO MOOKAPELE
STRATEGIC SUPPORT AND GOVERNANCE MANAGER
EXECUTIVE ASSISTANT ISABELLA NXUMALO
PLANNING, REPORTING AND MONITORING
EXECUTIVE TSHOLOFELO MOKOTEDI
LEARNING PROGRAMMES
MANAGER ELVIS NTIKANA
CHIEF OPERATIONS OFFICER
position vacant as at 31 March 2021
PERSONAL ASSISTANT ELLIOT SEAKE
CHIEF FINANCIAL OFFICER ROBYN VILAKAZI
CORPORATE SERVICES EXECUTIVE
CANDICE MOODLEY
PERSONAL ASSISTANT
PLANNING AND MONITORING MANAGER
KABELO MASILO
ENERGY SECTOR PLANNING AND M&E
MANAGER
RISK AND COMPLIANCE MANAGER
THANDEKA SIBISI
WATER SECTOR PLANNING AND M&E
MANAGER NORA HANKE-LOUW
PROVINCIAL OPERATIONS MANAGER
LUNGILE TSHABALALA
PROJECTS MANAGERBENEDICT MASOPHA
Researcher Sector Skills Planning Practitioner
Planning Practitioner M&E Practitioner Planning Administrator M & E Administrator
Risk and Compliance Practitioner
Water Specialist Water Administrator
Energy Specialist Energy Administrator
Learning Programmes Practitioner
Learning Programme Administrator
Projects Co-ordinators (x2)
Projects Administrator
Provincial Operations Co-ordinators x3
Provincial Operations Co-ordinators x6
Provincial Operations Administrator
Career Centre and Work Placement Administrators x9
Administration Clerks x9
FINANCIAL MANAGER DOUGLAS MALATJI
Financial Management Administrator
FINANCIAL ACCOUNTING MANAGER
CATHRINE KOBYANA
Financial Controllers x2 Financial Administrator Payroll Administrator
HUMAN RESOURCES MANAGER
NKATEKO SITHOLE
HR Practitioner Resourcing Practitioner Talent & Development Practitioner
MARKETING AND COMMUNICATIONS
MANAGER ELFRIEDA TYRER
Marketing & Communications Practitioner
Marketing Administrator Receptionist Call Centre Operator
Permanent Appointments Vacant Appointments Acting Appointments Fixed Term Appointments
QUALITY ASSURANCE AND COMPLIANCE
MANAGER
QA Practitioners x3 Subject Matter Experts x3
QA Administrator
SUPPLY CHAIN MANAGER
DICKSON KUTSAWA
Supply Chain Practitioner Supply Chain Administrator
ICT AND FACILITIES MANAGER
KOENA KHUMBANE
Facilities and IT Administrator
IT Technician
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PERFORMANCE INFORMATION
PART B
When we least expect it, life sets us a challenge to test our courage and willingness to change; at such a moment, there is no point in pretending that nothing has happened or in saying that we are not yet ready. The challenge will not wait. Life does not look back
PAULO COELHO
STATEMENT OF RESPONSIBILITY FOR PERFORMANCE INFORMATION
The EWSETA’s Chief Executive Officer is responsible for the authority’s
performance information and related judgements, as well for establishing and
implementing internal controls that reasonably assure the integrity and reliability
of the performance information. In my opinion, the performance information
in this annual report reflects fairly our achievements against the strategic
objectives, indicators and targets in the EWSETA Strategy 2020/21 – 2024/25 and
the Annual Performance Plan 2020/21 for the financial year ended March 2021.
The external auditors express an opinion on the EWSETA’s performance in their
report on pages 76 - 80 of this report. The Accounting Authority of the EWSETA
approved the performance information set out in this document.
Mpho MookapeleChief Executive Officer
31 July 2021
AUDITOR-GENERAL’S REPORT: PREDETERMINED OBJECTIVES
Refer to AG Report pages 76 - 80.
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SITUATIONAL ANALYSIS
SERVICE DELIVERY ENVIRONMENT
The EWSETA is mandated to serve South Africa’s critical energy and water sectors, that are in turn divided into 15 sub-sectors. In 2020, the EWSETA had 969 levy-paying and 1401 non-levy paying companies registered. The fact that non-levy paying employers far outweigh the number of levy-paying organisations poses a financial challenge for the EWSETA.
Industry partnerships are critical to the success of the EWSETA exercising its skills development mandate. The EWSETA works in direct collaboration with the Department of Higher Education, Science and Innovation; the Department of Mineral Resources and Energy; and the Department of Human Settlements, Water and Sanitation.
Key role players include: Eskom, Sasol, Independent Power Producers, Petronet, Petrosa, municipalities, fuel distributors, the Southern African Power Pool, domestic and industrial users of energy and water, SANEDI, water tribunals, catchment agencies, the Water Trading Entity (WTE), Trans-Caledon Tunnel Authority (TCTA), Water Boards, Komati Basin Water Authority (KOBWA), domestic water user associations and the Water Research Commission (WRC). In addition, the EWSETA works closely with:
• Professional Bodies: ECSA, PIRB and SACNASP• Labour relations and collective bargaining
bodies: NUM, NUMSA, IMATU, SAMWU• Other industry bodies: WISA, NBI, SANEA,
SAPVIA, IOPSA, CSIR
• Public HEIs, private HEIs, TVET Colleges, CET Colleges and private colleges
ORGANISATIONAL ENVIRONMENT
The emergence of the new SETA landscape, governed by the National Skills Development Plan gazetted in March 2019 and commenced on 1 April 2021, requires SETAs to establish a functional operational structure and staff compliment appropriate to the size of the sector, levy income and administration budget limits.
To this end, during the period under review, the EWSETA started an Operating Model (OM) and Organisational Design (OD) development process to thoroughly and critically review the EWSETA’s organisational system holistically including processes and people, in order to deliver value and the implementation of the outcomes will be during this strategic period.
Two key factors impacted the organisation and its operations during the period under review.
The first of these is the National State of Emergency and accompanying lockdown in response to the COVID-19 pandemic and the four-month skills development levy holiday that effectively resulted in the EWSETA losing one-third of its anticipated income for the period. Both of these subjects have been addressed extensively throughout this Annual Report.
In addition, Mpho Mookapele the organisation’s appointed CFO served as the Acting CEO until the end October 2020. This meant that the organisation was not able to appoint a permanent CFO, that brought with it some instability within the Finance Branch. Following the appointment of Mpho
Mookapele as the CEO in November 2020, the organisation was able to commence recruitment for a CFO and Robyn Vilakazi was appointed to this position in March 2021.
The Chief Operating Officer, Ineeleng Molete, left the organisation at the end of December 2020, and this position remained vacant until the end of the financial period being reviewed.
Furthermore, several key managerial positions within the organisation have remained vacant during this period. These positions were not filled initially due to the moratorium placed on any recruitment by the Department of Higher Education and Training at the start of the lockdown. Then subsequently as a result of the Organisational Design process. More information on this matter is available in the Human Resources Section of the Annual Report.
KEY POLICY DEVELOPMENTS AND LEGISLATIVE CHANGES
During the period under review, the following factors in some way informed the activities of the EWSETA.
• Implementation of the National Skills Development Plan (NSDP) 2030 as from 1 April 2020. This 10-year plan will serve as the guiding strategy for the development of the Post School Education and Training (PSET) Sector.
• The introduction of the South African Economic Reconstruction and Recovery Plan by President Cyril Ramaphosa in October 2020, is expected to have a significant impact on the skills needs in South Africa’s energy and water sectors as the country seeks to place the economy on a sustainable recovery trajectory.
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PROGRESS TOWARDS ACHIEVEMENT OF INSTITUTIONAL IMPACTS AND OUTCOMES
The information below briefly details how the EWSETA intends achieving the outcomes outlined in the National Skills Development Plan 2030 and the Medium-Term
Strategic Framework (MSTF) 2019 - 24 Priority 3: Education, Skills and Health
Outcomes Outcome indicators BaselineFive-year Target
(to 31 March 2025)Achievement
as at 31 March 20211. Improved SETA
performance
1.1 Percentage of targets
achieved against approved
APP targets
74 100% of APP targets achieved 68%
1.2 Annual stakeholder
satisfaction survey index 90 90%
Capacity and financial constraints
prevented a stakeholder survey taking
place in 2020/211.3 AGSA audit outcome
Unqualified AuditUnqualified audit without
emphasis on matterUnqualified audit
1.4 Development and
Implementation of an
Operating Model and
Organisational Design NA
100% Implementation of
Organisational Design Strategy
By the end of 2020/21, the draft
Operating Model and Proposed
Organisational Structure was completed.
In 2021/22 implementation and roll out
will commence following Accounting
Authority approval.2. Enhanced learning
programmes for
occupations in high
demand
2.1 (%) Learners confirming
their learning programme is
directly related to the work
they undertake
NA 80% 84%
2.2 (%) Increased employability
of completers/graduates NA 70% 55%
3. Improved organisational
learning on performance of
programmes
3.1 Rating of organisational
learning by employees. N/A 80% positive rating N/A
4. Increased access for
occupations in high
demand within the energy
and water sector by 2024
4.1 Ratio of discretionary grant
budget allocated to high
(H), intermediate (I) and
elementary (E) level skills.
H: I: E = 10:70:20 H: I: E = 25:60:15 H : I : E = 28 : 48 : 23
4.2 Number of learners
enrolling in EWSETA
occupations in high
demand.
6 976 7 000 701
Outcomes Outcome indicators BaselineFive-year Target
(to 31 March 2025)Achievement
as at 31 March 20215. Increased skills capacity
through workplace-based
learning
5.1 No of workplace-based
learning interventions. 150 200
17 interventions comprising artisanships,
learnerships, work integrated learning
and internships commenced in the
period under review.5.2 No of workers participating
in learning programmes. 5 635 6 000 1 993
6. Increased economical
participation of CBOs/
NGOs/ NPOs/SMMEs
within the energy and water
sector
6.1 Number of CBO/NGOs/ /
NPOs/ SMMEs supported
with training interventions 139 175 20
6.2 No of entrepreneurship
enterprises and
cooperatives developed.
26 50 0
7. Increased support for the
growth of college system
7.1 No of public colleges
supported.25 35 7
8. Increased uptake of careers
in energy and water sectors
8.1 Number of career guidance
events/activities where
EWSETA is exposed to high
school learners
N/A 200 64
8.2 Workshops with career
development practitioners
where details on careers in
energy and water sectors
are provided
New Indicator 40 11
9. Updated qualifications that
are aligned to the current
skills training needs
9.1 Number of new
qualifications developed as
per Industry needs.
18 20 2
Note to Readers: The information that has been provided in this section of the document is an overview of all APP targets as per the revised 2020/21 APP and the EWSETA’s achievement against these targets.
OUTCOMES, OUTPUTS, OUTPUT INDICATORS, TARGETS AND ACTUAL ACHIEVEMENTS
The EWSETA submitted its APP for the 2020/21 period to Parliament by the due date of 28 February 2020. The COVID-19 lockdown and reduction in skills development levies received during the period under review necessitated a review of APP targets. The addendum on pages 134 to 156 details any revised APP targets; EWSETA’s performance against these targets and any reasons for deviations.
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INSTITUTIONAL PROGRAMME PERFORMANCE INFORMATION
Key Result Area (Programme)
OutcomesStrategic Outcome Oriented
GoalGoal Statement
Programme 1: Administration
• Improved SETA Performance
• Compliance with statutory requirements
• Improved Operational Performance
The purpose of the
programme is to provide
strategic leadership,
management, and
administrative support
• Exercise oversight responsibility for financial,
performance reporting, compliance and related
internal controls
• Promote good corporate governance and practices
• Implement HR management practices to recruit
adequate and appropriately skilled human resources
• Provide ICT systems and services to deliver the
EWSETA mandate
• Promote the EWSETA’s reputation and visibility among
stakeholdersProgramme 2: Skills Planning.
• Enhanced learning programmes for occupations
in high demand
• Improved organisational learning on
performance of programmes
The purpose of the
programme is to ensure that
human resource development
information is available
and contributes to skills
development planning
• Improve sector skills planning
• Establish research, as well as M&E activities to inform
skills planning, as well as qualifications and learning
interventions development for the energy and water
sectors
• Review and update the SSP annuallyProgramme 3: Learning
Programmes
and Projects.
• Increased access to occupations in high demand
within the energy and water sector by 2024
• Increased skills capacity through workplace-
based learning
• Increased access to occupations in high demand
• Increased support for the growth of the college
system
• Increased economical participation of CBOs/
NGOs/ NPOs/SMMEs within the energy and
water sector
• Labour force that is updated with current skills
required for the sector
The purpose of the
programme is to increase
productivity in the energy and
water sector through skills
development
• Promote and support artisan and other middle and
high-level programmes
• Establish partnerships to lead and manage agreed
projects and programmes
• Promote occupational learning pathways for scarce
skills through career guidance initiatives
Programme 4: Quality
Assurance.
Updated qualifications that are aligned to the
current skills training needs
The purpose of the programme
is to enable the EWSETA
to execute the delegated
functions of the QCTO.
• Identify appropriate qualifications for each occupation
• Develop and register occupational qualifications
where there are gaps
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PROGRAMME 1: ADMINISTRATION
OUTCOME: IMPROVED SETA PERFORMANCE
A V
Approved SP, APP and AOP -
80% of APP targets achieved 68% -12%
Quarterly SETA good governance reports -
OUTCOME: COMPLIANCE WITH STATUTORY REQUIREMENTS
A
Unqualified audit opinion* for 2019/20 financial period
Approved internal audit strategy by 30/06/20
T Target
A Achieved
V Variance
Target achieved
Not achieved
Achieved 5 months after targeted date
Ultimately, Corporate Services’ goals are aligned to those of the organisation, where we want to be the support partner when it comes to driving a high performance culture throughout the EWSETA, as stakeholder engagement is central to everything we do
CANDICE MOODLEY, CORPORATE SERVICES EXECUTIVE
OVERVIEW BY THE CORPORATE SERVICES EXECUTIVE
The performance of the Corporate Services (CS)
Branch during the year under review is truly a case of
Adaptability through Disruption. While the pandemic
affected some areas of the branch’s performance,
it also served as a motivator to excel, to adapt, to
be innovative. As the supplier of support services
to EWSETA, the CS branch needed to ‘up its game’
to deliver and implement what was required, under
unusual and unpredictable circumstances.
Dealing with the fall-out brought about by the
COVID-19 pandemic and subsequent lockdown
required co-operation and teamwork across the
three CS departments. We successfully initiated and
drove the tools, systems and support mechanisms
required by the organisation in the face of the
disruption brought about by the pandemic.
One of the most challenging areas for the CS
team was adapting to ‘virtual’ collaboration. Where
previously we thrived on ‘face-to-face’ engagement,
we had to find innovative ways of ensuring that as a
unit we maintained our ‘connectivity’ and became
greater sounding boards for one another whilst
keeping our eye on the target.
In the year under review, three targets in
Programme 1: Administration that were the
responsibility of Corporate Services were not
achieved. Lessons learnt to mitigate this in future is
definitely proactive planning to enable consistent
performance throughout the year and ensuring that
our controls, particularly in the IT environment are
strengthened.
* An ‘unqualified audit opinion’ is awarded when the financial statements contain no material misstatements, but findings have been raised on either reporting on predetermined objectives or non-compliance with legislation, or both these aspects.
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Furthermore, the need for partnering and greater collaboration, not only with our internal, but also our external stakeholders cannot be emphasised more, and the fact that in this reporting period EWSETA has developed an extremely robust Partnership Model, is indicative of how adaptive we have become.
On pages 46 to 47 of this report, we provide details on the Organisation Design (OD) and Operating Model (OP) process that commenced in the year under review. We anticipate that once the OD process is finalised, we will have a fit-for-purpose structure, with the right skills and competencies within the organisation to assist in driving organisational performance, particularly from a stakeholder engagement perspective and a sector and industry participation outlook.
Ultimately, Corporate Services’ goals are aligned to those of the organisation, where we want to be the support partner when it comes to driving a high-performance culture throughout the EWSETA. Some of the new planned initiatives include focusing on embedding stakeholder-centricity and operational excellence across Human Resources, Marketing and Communications and ICT. As an example, we are looking at how we can use Marketing, HR and ICT systems and information to drive data-rich reporting within these activities to provide a credible mechanism for sector-relevant data.
With the review of our organisational strategy and the emphasis placed on, amongst other strategic objectives, a high performance culture, it was imperative that our Corporate Services strategies too be reviewed to ensure that we are aligned as the key enablers to achieve high performance for
The period under review therefore, was the first year of implementation of these strategies and in my opinion, Corporate Services is on the right track.
IT OVERVIEW
We had already reviewed our ICT strategy in 2021 and were implementing it when COVID-19 happened. From an IT Perspective, the key has been to build on improvements and IT infrastructure upgrades made in 2019/2020, starting with a complete organisational transition to Microsoft 365. Therefore, in March 2020 when the national lockdown was declared we were able to quickly and seamlessly transfer every staff member over to Microsoft 365, so there was zero business downtime.
Microsoft Teams has been a game changer for our organisation allowing for uninterrupted engagement and collaboration and the speed at which staff members grasped the functionality has been truly amazing and encouraging in terms of adaptability to a digital work environment.
IT Governance has been a key focus for EWSETA over the last few years and in terms of governance controls, I am pleased to report that we are doing very well in this area. An area that requires intensified focus is our ICT General Controls, and the 2021/22 financial year will see vast improvements being made.
The lack of an approved disaster recovery plan (DRP) was identified as a finding during the 2019/20 financial period and earmarked as a strategically important activity during the 2020/21 period. To implement a formal DRP requires extensive work and achievement of this during the review period
was impacted by delays due to the lockdown, and when we were able to return to the office, in line with the permitted numbers, an internal IT audit process commenced, which was only finalised at the beginning of 2021. These challenges were further compounded by the exit of our IT manager.
That said, throughout this reporting period although we were in essence, working in a disaster recovery mode, not once was the EWSETA affected negatively or was the organisation at risk of not operating fully from a systems or connectivity viewpoint across the branches.
In retrospect, COVID has fast-tracked digitalisation and the way we look at ICT as an enabler for the organisation and therefore, IT has been a significant cost driver for us. Considering that our IT infrastructure and systems have to a large extent enabled continued operations during the lockdown, one can certainly justify the investment.
During this year of disruption, EWSETA needed to consider new and innovative support mechanisms for service providers and stakeholders and therefore began developing our online learning and engagement platforms to engage with our sector. To date, we have developed, what we refer to as our ‘Knowledge Hub’, which we are working on to bring to life so that it can be implemented. We will be paying attention to this in the five-year strategic period, with the EWSETA working diligently towards having an E-learning strategy supported by our system.
Our IT division also developed our own virtual communication platform, ‘Live Hub’, much like a Zoom or a Teams meeting platform, through
which we were able to engage our stakeholders continuously on a virtual basis.
This enabled us to hold several engagements and events during the reporting period, with great success, including our Women’s Conference and several workshops with stakeholders. EWSETA’s Marketing and Communications department hosted a career development practitioner workshop on our platform, and we hosted our AGM on Live Hub, garnering a lot of interest from other SETAs.
With the IT strategy being reviewed, we found that many users were opting to not use our MIS system because it was no longer responding to their needs, resulting in challenges elsewhere down the line when it came to reporting, consolidation of data or to using that data to impact fully. Therefore, a strategic business decision was made to take the MIS and ERP systems in-house and to develop our own systems to respond to our needs and our unique processes, moving away from the over reliance on third-party service providers. We need a system that is agile and able to evolve with us.
In order to develop our own MIS and ERP in-house, we need experienced IT resources. The intention was to procure these resources during 2020/21 so some of our key systems could go live by December 2020. However, delays in procurement as a result of the National Treasury moratorium placed on procurement during several months of Lockdown, severely impacted the organisation’s procurement plan roll out and we were faced with a number of delays as a result.
As a result, we were only able to bring on a developer in February 2021, which postponed
development of our own WSP and ATR system. We had also anticipated being further along in our MIS development than we are presently.
During the 2020/21 financial period, our discretionary grant system, our mandatory grant system — which is the WSP/ATR application system — and several quality assurance systems, including accreditation and reporting, remains a key priority. These systems are our main stakeholder engagement and interaction conduits, through which we need to ensure a seamless, efficient and effective service delivery experience.
It is my firm belief that IT will continue to drive innovation and operational excellence at EWSETA. Technology is one of the critical components of any Operating Model and therefore, we will ensure that our IT capabilities are strengthened and adaptive to whatever disruption we may face going forward.
MARKETING AND COMMUNICATIONS OVERVIEW
During the past year, while in many instances we had already started laying the foundations for change, COVID-19 helped us along at a faster pace.
The main adjustment for us was how to engage our stakeholders, moving away from face-to-face engagement. In the past, attending key strategic events was our ‘go-to’ method for engagement, where we positioned the EWSETA brand, ensuring that skills development was a key topic on the agenda. In the wake of lockdown, however, conferences disappeared and with them, physical personal interaction. Adapting to the new landscape required coming up with an alternative communication strategy.
A strategic three-year communication plan was developed in this period that identifies our key engagement points from a Marketing and Communications’ perspective and how we can leverage what we do across all those engagement points.
While we also appeared in print media, a drive has been to do things virtually and digitally, with increased use of platforms such as Zoom, Teams or Live Hub, and an increased focus on our social media presence. This involved thought leadership articles and participating in webinars while creating our own virtual engagement initiatives to maintain contact with our stakeholders, assuring them that we were still very much around.
In the APP target for our social media platforms alone, on average, we have exceeded our target by 400+ percent, with the LinkedIn group exceeding target by 1000%. This can be attributed to pursuing a highly focused approach from the marketing side, posting rich, relevant content and using the opportunity to engage with our sector and draw attention to the mandate and skills development activities of the EWSETA.
We partnered with our stakeholders, and participated in pertinent discussions on a variety of topics relating to skills in the energy and water sectors, particularly within a ‘disruption’ context. Those discussions produced some insightful content that was then filtered through our social media platforms to the sector at large.
In this last reporting period, it became evident through our employee engagement surveys and the focus groups that we attended, that we must
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intensify our communication, not only externally but internally too, as staff felt that there was a lack of communication at EWSETA.
Consequently, there has been an intensified
internal communications drive from Marketing
and Communications, producing a stream of
information to create open, transparent lines of
communication where we address staff concerns
directly, and ensure that they are not hearing
information after the fact, or ‘in the corridor’.
We will improve this process with a formalised
employee engagement strategy.
While a fair amount of work was done by the Disaster
Management Committee around COVID-19,
we rely on Marketing and Communications for
support to get that work communicated. They
have excelled at communication, both with our
stakeholders and staff, constantly reinforcing the
standards for COVID-19 protocols. This continuous
awareness campaign and adherence to the
protocols has resulted in a mere handful of COVID
cases within EWSETA, none of which were work-
related contagions. Given the environment, this is
a remarkable achievement and one that serves to
support the validity of the actions taken.
Capacitating divisions has also been a challenge
during this last reporting period, as the moratorium
on procurement hampered filling much needed
vacancies and this too, was felt in the Marketing and
Communications division.
Despite the revision of some of our targets in the
amended APP to meet new criteria, they remained
high targets. Nevertheless, marketing fulfilled its
targets for the period under review and in areas,
exceeded them. This is attributable to adapting
quickly and developing innovative ways to approach
challenges.
Even prior to the reporting period, we have been
driving our thought leadership stance and our
brand awareness within the sector and, judging by
the WSP submissions we receive year-on-year, there
has been an increase. While we cannot attribute that
solely to Marketing and Communications’ initiatives,
it is becoming clear that industry is standing up and
taking notice about how we conduct ourselves
within our sectors.
Overall, we feel that the Marketing and
Communications strategy over the reporting period
was highly successful.
HUMAN RESOURCES
The human resources function also falls within the corporate services gambit, but this function has been covered extensively in Section D of this Annual Report on pages 64 to 69.
ACKNOWLEDGMENTS AND THANKS
I appreciate and thank the leadership of the EWSETA during this time. I respect the way we pivoted and adapted, and I also appreciate the guidance we received from the Accounting Authority and our CEO in that regard. They were there to provide and offer support in whatever means was required of them, thinking on their feet, finding solutions, and
adapting to the ever-changing circumstances in a very disruptive environment.
I would like to acknowledge my Corporate Services team. With the amount of upheaval that they have each endured through this global event, sometimes on a personal level, but on the work front, these amazing individuals blurred the lines between work and their personal life, sacrificing weekends and enduring long extended hours. I cannot thank them enough for their effort and support.
I am very cognisant of the effort that my branch has put in and I want to acknowledge every single one of their efforts and for going above and beyond and for maintaining the values that we want in an organisation. I respect your integrity, teamwork, and excellence, in particular from those working remotely.
I recognise the rest of the organisation in terms of their tenacity and their ability to adapt and their determination to still make sure the EWSETA, even under the dire circumstances, was able to still report a worthy performance.
Candice MoodleyCorporate Services Executive
PROGRAMME 1: ADMINISTRATION
OUTCOME: Improved Operational Performance (Human Resources)
T A V
Signed performance contracts for all staff 100% 97% -3%
Performance evaluations conducted for all
staff100% 100% -
Implementation of a training and
development plan that is aligned to the
skills audit outcomes
68% 35% -33%
Source partner to conduct organisational
review, development and design, and
initiate project
1 -
Employment equity report submitted to
DoL1 -
DESIRED OUTCOME: Improved Operational Performance (Information Technology)
T A
Implement reviewed ICT Strategy
Implement EWSETA Stakeholder portal and reporting dashboard
Implement disaster recovery and business continuity plan
T Target
A Achieved
V Variance
Target achieved
Not achieved
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How we position ourselves to respond to the skills development needs of the sectors we serve will determine our relevance. We must therefore lead in identifying the skills in high demand, whether it be for re-skilling, upskilling, or the introduction of new skills
TSHOLOFELO MOKOTEDI, ACTING EXECUTIVE: PLANNING, MONITORING & REPORTING
OVERVIEW BY THE PLANNING, REPORTING AND MONITORING EXECUTIVE
Operating in an essentially disruptive environment
this past year required the Planning, Reporting
and Monitoring (PRM) branch to adapt to new
and develop different ways of doing things,
including embracing new systems and processes.
PRM plays a significant role in co-ordinating the
organisation’s prioritised sector skills development
planning. These are aligned to the national skills
development strategic plan, both sectoral and
national.
Through tactical stakeholder engagements and
collaboration, the branch monitors and evaluates
the planning of skills delivery. It is within this branch
that we anticipate occupations and skills that
are in high demand for higher, intermediary, and
elementary levels within our sectors. The entire
EWSETA value chain depends on the efficient
delivery of this process, without which, the EWSETA
would not be able to fulfil its mandate to the energy
and water sectors.
ADAPTING TO DISRUPTION
When the national lockdown was declared in March
2020, it coincided with a significant compliance
deadline within PRM namely, the collection of the
Workplace Skills Plans (WSPs) and Annual Training
Reports (ATRs) that were due for submission by the
end of April 2020.
This milestone is significant as it provides the
primary source data used to anticipate high
demand occupations. The PRM branch encouraged
DESIRED OUTCOME: Improved Operational Performance (Marketing & Communications)
T A V
Sector events and CEO Roadshows held 6 10 +4
Production of publications/ brochures 7 -
Develop concept and outline of
communication APP for mobile devices1 -
Followers across all active social media
platforms
20% increase
Average 408%
increase-
Whilst social media is to a large extent the ‘go to’ means of gathering news, the
lockdown and lack of access to other means of interacting with stakeholders
required that the EWSETA brings its ‘A Game’ in regards communicating with
stakeholders on its active social media channels. In the 2020/21 period, the
EWSETA experienced exceptional social media growth as indicated by the
statistics provided below.
1 April 2020 31 March 2021 % Growth
followers 1 044 2 796 159%
followers 81 934 1 053%
followers 174 349 100%
followers 368 553 66%
AVs 1 5 125%
Views 45 388 762%
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employers to provide us with accurate skills needs
data to enable us to establish relevant training. The
required information also needed to be submitted
timeously.
At the onset of the lockdown, we were heavily reliant
on telephonic contact or emails for stakeholder
engagement. Without any other method available,
EWSETA timeously implemented Microsoft 365 and
Teams throughout the organisation. This facilitated
maintaining seamless stakeholder contact, albeit
remotely. This required a significant mindset change,
forcing people to work differently while combining
work and home commitments. Flexibility was
paramount.
In the face of this disruption, we received the highest
ever response in terms of submissions of WSPs and
ATRs. During this unfamiliar time, we mobilised
our team to observe the COVID protocols, whilst
encouraging them to excel in their duties. We also
took note of the conditions that were constraining
them while working remotely, allowing us to work
around the challenges owing to our increased
communication and working transparency, as well
as observing an open-door policy. Throughout
the process we encouraged staff to uphold
organisational values, including ‘integrity’. This
meant behaving with honesty and honour even
‘while no one is watching’. We also encouraged
‘excellence’, to strive to do our best in everything,
even under difficult circumstances.
PERFORMANCE OUTCOMES
Despite the challenges we faced, and much
happening in the period under review that
influenced our performance, the PRM Branch
achieved significantly.
As mentioned, we improved the submission of
the WSP/ATR by 26% from the prior year, as well
as the quantity and quality of data collected. While
we capacitated our Skills Development Facilitators
(SDFs) on WSP/ATRs submissions remotely, through
SDF capacity building sessions and ongoing one-
on-one interactions, we also capacitated the
Organising Framework for Occupations (OFO).
The CEO roadshows that took place during the last
quarter of the prior year significantly contributed to
our achievements around submissions and the PRM
Branch, with support of our Marketing Department,
partnered with stakeholders on industry events
as well as sponsoring several sector interventions
under the water and energy cluster.
During the period under review, EWSETA made
great strides towards implementing our research
agenda, accomplishing many matters within the
Sector Skills Plan’s (SSPs) Continuous Improvement
Plan (CIP), an operational document that reports
progress on each of the ten CIP matters that are
aimed at supporting the EWSETA in its sector skills
planning activities, including research projects.
The Department of Higher Education and Training
(DHET) uses the CIP to monitor the EWSETA’s
implementation of the SSP.
The past three years have seen a steady increase
in the EWSETA research output and the year under
review was no exception. While EWSETA has now
institutionalised the annual tracer and biennial
impact studies, further research projects have been
undertaken as covered under Programme 2 of this
report.
The location of sector skills planning, research,
strategic planning, as well as monitoring and
evaluation within the same branch ensures synergies
between planning and reporting, and to maximise
efforts associated with anticipating, planning and
evaluating the impact of our skills delivery efforts.
The EWSETA continues to align its plans to
national strategies, plans and policies, with the
Accounting Authority in an oversight role on the
SSP development and approval process. Under
Programme 2, only one KPI could not be achieved
by the PRM branch, namely the development of
the Monitoring and Evaluation (M&E) Framework.
Reasons for any variances are covered in the
addendum at the end of this document.
Other challenges encountered for the delivery of
Programme 2 included the 4IR and Technological
Advancement.
For this project, we seek to explore ways in which
emerging technologies and artificial intelligence
(AI) skills influence the sector. The project has been
rolled over from the prior year.
The other project rolled over from the prior year
is the Methodologies for the hard-to-fill-vacancies
(HTFVs). EWSETA, under PRM Branch, will implement
the project in the coming year in partnership with
the DHET and other SETAs.
BECOMING A HIGH-PERFORMANCE AUTHORITY
For the EWSETA to be recognised as an authority
from Skills Planning perspective, we need to have a
credible institutional mechanism that can accurately
anticipate the skills needed in our sectors.
That said, the branch has done well based on the
overwhelmingly positive feedback from DHET with
regards to the credibility of the Sector skill Plan (SSP):
‘The total score for this SSP is 453 out of 471 (96%).
This is an improvement from the 91% awarded for
the previous SSP. It is a very well written SSP and the
EWSETA is commended for its hard work’.
Nevertheless, there are concerns by some in
the sector that the SSP does not address other
occupations in high demand. To this end, we will
continue to address these concerns.
In the year under review, the PRM Branch conducted
a special skills gap analysis to determine real
time skills gaps, underscoring the importance of
commissioned research for HTFV methodologies.
The developed Monitoring and Evaluation
System Description Plans continue to drive the
implementation of the milestones identified. The
priority in the coming year, however, remains the
development of the M&E Framework.
There are key change drivers that were identified
with clearly articulated implications for skills
development and, in this context, the PRM
developed skills development strategies in response
to the Integrated Resources Plan (IRP), part of the
National Water and Sanitation Masterplan.
Given that the energy sector is going through its
own transition with the Just Energy Transition,
the PRM’s Energy Cluster Department has been
positioning itself with relevant association bodies
and strategic partners to assist in driving the skills
development strategy.
When the President announced the Economic
Reconstruction and Recovery Plan (ERRP) aimed at
stimulating equitable and inclusive growth, EWSETA
developed a skills development strategy in response
to the call, outlining the importance of engaging at
the correct level, with the right stakeholders.
As EWSETA plays an intermediary role between
the demand and supply side in the post school
education and training system, through existing
and newly emerging partnerships – from both the
demand and supply side of skills, education and
training – we are identifying the leading voice in the
industry around the Just Energy Transition.
To perform optimally, the entire organisation must
have a clear grasp of the core principles of the NSDP
and understand what is happening at national and
sectoral levels.
In the prior year, the Minister of Human Settlements,
Water and Sanitation launched the Water and
Sanitation Masterplan in which we are already
identifying specific principles that align with the
work we do, including identifying qualifications
prioritised in the Masterplan. PRM, under the Water
Cluster Department, facilitates pre-scoping sessions
to, amongst others, gain support from the water
sector in terms of curriculum and qualifications to
be prioritised. In the year under review, partnerships
and co-funding letters were sent to relevant SETAs
and stakeholders in this regard.
In the review period, the PRM Branch developed
a Partnership Model that is aimed at providing an
integrated, structured framework for the regulation
of funding of and/or co-operation with various
forms of partnerships. This will allow EWSETA to
leverage from the partners in the skills development
space for effective collaboration and involvement in
high impact projects.
PRM successfully entered into partnerships with
employers, TVET and CET colleges, as well as
universities. All these partnerships supported
the delivery of some of Programme 2 (Research
Partnerships) and Programme 3 (Learning
Programmes Partnerships).
The main partnership highlights follow.
Employer partnerships
• Bambili Energy: Through this partnership,
PRM Branch facilitated the awarding of three
interns for a 12-month Internship programme.
This followed another successful collaboration
between the Department of Science and
Technology (DSI), EWSETA, Bambili Energy
and the University of Pretoria (UP), wherein 18
graduates from TVETs and UOTs were given
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an opportunity to participate in the Hydrogen
Fuel Cells Technology course offered by UP.
The project was funded by DSI. The partnership
also facilitated the process of registering the
curriculum for the Fuel Cells Technology Skills
Programme, which is currently underway.
• Proconics also partnered with EWSETA for
delivery of professionalisation of engineers
(candidacy programme), internships and
bursaries.
Universities
• Rhodes University brought new and innovative
ways of teaching, curriculum design, and
knowledge to the key role players within the
education environment, namely, Public TVET
and CET lecturers, as well as management.
• WITs Business School: In response to gender
imbalances in the energy and water sectors,
through partnership with Wits University, 19
employed women in both sectors were enrolled
for the Executive Development Programme
(EDP). In addition, the ‘Missing Middle’ learners
were also enrolled for bursaries to address
occupations in high demand.
• University of Cape Town: Learners were
enrolled in a Post Graduate Diploma
in Engineering Plant, in addition, the
‘Missing Middle’ learners were enrolled for
bursaries in occupations in high demand. TVETs and CETC partnerships
• Public TVET and CET employees entered skills
programme for the one-year, online, NQF level
5 introductory course on Facilitating Social
Learning and Stakeholder Engagement in Natural
Resource Management at Rhodes University.
• Orbit TVET, which is also a Centre of Excellence
for Electrical Trades and Eastern Cape CETC
received infrastructure support through laptops.
• As EWSETA has been appointed by DHET as a
Co-ordinating SETA TVET Co-ordination Office
(CSTO), once more, an MOU was signed with
Orbit TVET College to facilitate the relationship
between the parties. The CSTO project was
introduced by the DHET in recognition of
the high importance of creating linkages and
partnerships between TVET Colleges, SETAs
and employers in different sectors.
• Northern Cape CETC benefited from the Skills
Programmes, whereby management and
lecturers were supported through the Rhodes
University project for beneficiaries to be skilled
on the NQF 5 skills programme to facilitate
Social Learning and Stakeholder Engagement in
Natural Resource in Management.
RESEARCH AGENDA
EWSETA, under the PRM Branch, has thus far
completed two annual tracer studies in 2018/19
and 2019/20 respectively. Two impact studies were
concluded in 2018/19 and 2020/21.
The evaluation studies, underpinned by empirical
research, were undertaken to evaluate the extent
to which EWSETA learning programmes influence
subsequent learner outputs and/or outcomes
through education and training.
Evaluation studies such as impact and tracer
studies constitute a critical part of skills planning
imperatives, thereby contributing to a credible
mechanism for evidence-based decision making.
We commissioned Witwatersrand University’s
Centre for Researching Education Labour (REAL) to
conduct topical research project: Linking education
and work in the South African energy and water
supply sectors.
PRM branch also commissioned research on
Emergent and Established Co-operatives and
another research project commissioned on
Emergent and Established Small Business.
In the year under review, we implemented the
first year of the Research Chairs project on the
Wastewater and Solid Waste. Tshwane University
of Technology (TUT) was commissioned in the
prior year to conduct the three-year project.
Central University of Technology (CUT) has been
commissioned to conduct a research study in
Renewable Energy.
Through our researcher, we conducted the Sector
Sills Plan Annual Update, Tracer and Impact studies
in-house. Also in-house, we conducted the analysis
of received Workplace Skills Plans (WSPs) and
Annual Training Reports (ATRs). The key findings
and recommendations from WSP/ATR analysis
recommended that EWSETA should prioritise
the following: Increase the Stakeholder base to
include more employers informing on sector
planning and participation in skills development
interventions; support transformational imperatives
and prioritise the most appropriate skills in response
to the prescripts as set out by the ERRP, as identified
through research and skills planning.
During the reporting period, the only target the
PRM Branch did not achieve under Programme
3 is the one on TVET. Out of a target of five, we
achieved three. It is anticipated that with the
partnership model in place EWSETA, through the
PRM Branch, will be strategically positioned to form
value-driven partnerships and be responsive as and
when required.
LOOKING AHEAD
The next 12-month period will pose some
interesting challenges for the PRM branch, among
which is climate change.
The climatic extremes over the years has adversely
affected productivity, resulting in increased
associated costs for businesses, which in turn have
had a negative impact on training objectives and
intended skills outcomes.
The previously low dam levels, as a direct consequence
of dry weather conditions, affected provision of
water services as well as training thereof within this
sector. Further, fluctuating weather conditions have
contributed to the erosion – and other related damage
– of expensive production equipment.
In addition, the undesirable weather conditions
have hampered the productivity of the likes of wind
farms and the associated training thereof within this
sector.
Education and training of professionals and
specialists in the energy sector continues to
be important. Prioritisation of professionals
and specialists in the water sector, for example
hydrologists, will continue to gain importance in
finding effective ways to source groundwater and
addressing water shortages.
Furthermore, the implementation of the ERRP
Skills Development Strategy remains another
constructive challenge.
The provision of appropriate skills across related
occupations in response to the economic
reconstruction and recovery vision, have become
a critical priority. The importance to develop a pool
of candidates ready to assume job roles in the areas
of engineering, environmental sciences, and more,
remains paramount.
EWSETA, through the PRM branch, will have to
ensure ongoing real-time anticipation of high
demand skills and jobs, while ensuring in all
circumstances that the supply meets the demand.
How we position ourselves to respond from a
skills development point of view will determine
our relevancy to the industry. We must therefore
continue to lead in identifying the occupations in
high demand, whether it be for re-skilling, upskilling,
or the introduction of new skills.
As part of the ERRP skills plan implementation, PRM
will respond adequately to the needs of Just Energy
Transition, focusing mainly on solar PV and wind
skills, as outlined in the CSIR JET research project.
To address these challenges the anticipation is that
there will be strategic partnerships to journey with
EWSETA along this course. There are longstanding
engagements with partners such as the WRC, for
driving the Research and Development Innovation
Roadmap, and WISA, particularly for driving the
professionalisation of process controllers and water
industrialisation.
We have planned partnerships with Innovations
Hub – for the capacitation of SMMEs – to participate
in Small Scale Embedded Generation (SSEG)
Microgrids and Battery Energy Storage Solutions,
CSIR, and other association bodies. State Owed
Entities (SOEs), especially utilities, municipalities,
SALGA and MISA will also be prioritised in the
coming year as will relevant SETAs, to complete
the eco-system within which the energy and water
sector operates.
Tsholofelo Mokotedi
Acting Executive: Planning, Reporting & Monitoring
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PROGRAMME 2: SKILLS PLANNINGT Target
A Achieved
V Variance
Target achieved
Not achieved
DESIRED OUTCOME: Enhanced learning programmes for occupations in high demand (workplace skills plans and annual training reports)
One of the functions of a SETA in terms of the Skills Development Act No 97 of 1998 (the Act) is to collect
and disburse the skills development levies in its sector. Firms or organisation within the sector are required to
submit Workplace Skills Plans (WSPs) and Annual Training Reports (ATRs) to be considered for disbursement
of mandatory grant levies.
2020/21 2019/20
WSPs/ATRs approved
for small firms
T: 100
A: 125
V: +25
24% improvement on previous financial period
95
WSPs/ATRs approved
for medium firms
T: 30
A: 37
V: +7
13% improvement on previous financial period
32
WSPs/ATRs approved
for large firms
T: 20
A: 23
V: +3
4% improvement on previous financial period
22
Total 185* 149
*During the period under review, a total of 17 WSP and ATR submissions were rejected. The reasons provided
for this included: failure to supply senior authorisation by MD, Senior Representative or SDF; not completing
the application online correctly; non-submission of required supporting documents such as evidence of
training and proof of union consultation for companies employing more than 50 people; and late submission.
DESIRED OUTCOME: Enhanced learning programmes for occupations in high demand (sector skills planning)
2 Research agreements signed for growth of TVET occupationally directed programmes
1 Research project implemented to identify skills needs of established and emergent cooperatives
1 Research project implemented to identify skills needs of small and emerging enterprises
1 topical research project implemented
The WPPSET describes TVET colleges as the cornerstone of the PSET system in SA and proposes an expansion of this institutional type to absorb the largest enrollment growth in the PSET system. The EWSETA aims to undertake research that will be relevant and have an impact in occupationally directed programmes.
Two research agreements have been entered into with TUT and CUT respectively.
The TUT project focuses on Research in Wastewater and Solid Waste Management while the CUT has as its focus Research in Renewable Energy. Both projects will contribute towards skills development within the sector by conducting research and developing support to establish a sector skills pipeline with positive impact on employment creation.
Outcome 6 of the NSDP provides for SETAs to increase skills development support for entrepreneurial activities and emergent cooperatives, more specifically, their skills needs. UP has been contracted to conduct research to determine the skills needs of established and emergent co-operatives within the energy and water sector. The final evidence-based report will prepare the way forward to address the status, challenges, and opportunities towards bridging the gap between PSET and Co-operatives in the energy and water sector, taking into consideration future needs.
Outcome 6 NSDP provides for SETAs to increase skills development support for entrepreneurial activities and the establishment of new enterprises. SETAs are required to identify in their skills planning research, established and emergent enterprises and their skills needs.
The research project for determining skills needs of small enterprises has been awarded to Mzabalazo Advisory Services
Topical research plays an important role in enhancing skills planning. These topics are either identified by DHET or the EWSETA itself. The topic for the 2020/21 financial year was ‘Linking Education and Work’, a research work which was contracted to the Wits REAL Centre. Insights gained from the study will map a way forward on how the EWSETA can enhance its support to the sector.
DESIRED OUTCOME: Improved organisational learning on performance of programmes
1 impact study conducted and reported
1 tracer study conducted and reported
The EWSETA biennial impact studies seek to evaluate the effectiveness of EWSETA WIL interventions in terms of learner outcomes post-completion of respective learning programmes. Research conducted with a sample of learners who completed WIL in 2017/18 found amongst other interesting findings that: • 1 in 3 found
employment within six (6) months of completing WIL
• 49% found employment in less than 12 months
• The WIL opportunities improved overall quality of life for the majority of learners, which is consistent with the EWSETA Theory of Change with respect to desirable learning outcomes.
The Minister has directed SETAs to conduct annual tracer or similar studies on employment tracking and report the outcomes to the Department. The EWSETA has implemented two tracer studies since 2019. Research conducted with a sample of learners who completed WIL in 2017/18 found that approximately 55% of respondents who successfully completed learning programmes went on to secure employment. The EWSETA will continue to implement tracer studies to gain deeper insights into the learners’ whereabouts post-completion.
Sector Skills Plan reviewed and approved Quarterly monitoring reports submitted to DHET
Development of M&E Framework
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PROGRAMME 3: LEARNING PROGRAMMES AND PROJECTS
T Target
A Achieved
V Variance
DESIRED OUTCOME: Increased access to occupations in high demand within the energy and water sector by 2024
T A V
Discretionary grant budget allocated to developing high level skills 25% 28% +3%
Discretionary grant budget allocated to developing intermediate level skills 60% 48% -12%
Discretionary grant budget allocated to developing elementary level skills 15% 23% +8%
Learners who have completed learning programmes in employment 100 0 -100
People to be trained in entrepreneurial skills 10 0 -10
Rural development projects initiated 20 20 -
DESIRED OUTCOME: Increased skills capacity through workplace-based learning
TVET Colleges
T A V
TVET students requiring work integrated learning to complete their
qualifications placed in workplaces50 0 -50
TVET students completed their work integrated learning placements 30 50 +20
Universities
T A V
University students requiring work integrated learning placed in workplaces 50 21 -29
University students completed work integrated learning 30 55 +25
Unemployed Learners
T A V
Enrolled in internships 100 45 -55
Completed internships 100 0 -100
Enrolled in skills programmes 250 635 +385
Completed skills programmes 600 21 -579
Enrolled in candidacy programmes 20 20 -
Completed candidacy programmes 20 0 -20
Enrolled in learnership programmes 250 309 +59
Completed learnerships 900 1 029 +129
Employed learners (workers)
T A V
Enrolled in learnership programmes 250 250 -
Completed learnership programmes 250 375 125
Workers granted bursaries (new entrants) 50 15 -35
Workers continuing bursary studies 30 4 -26
Workers completed bursary studies 25 0 -25
Enrolled in skills programmes 800 801 +1
Completed skills programmes 1 500 1 194 -306
Workers enrolled in AET programmes 50 50 -
Workers completed AET programmes 25 0 -25
Federations/Trade Union supported through relevant skills training interventions 5 5 -
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DESIRED OUTCOME: Increased access to occupations in high demand
T A V
Artisan learners enrolled 600 619 +19
Artisan learners completed training 600 720 +20
Unemployed learners granted bursaries (new enrolments) 150 72 -78
Unemployed learners continued bursary studies 200 17 -183
Unemployed learners completed bursary studies 100 42 -58
Learners enrolled for RPL/ARPL 10 10 -
Learners completed RPL 10 17 +7
TVET partnerships established 5 2 -3
HEI partnerships established 3 5 +2
CET partnerships established 2 2 -
SETA-Employer partnerships established 5 12 +7
DESIRED OUTCOME: Increased support for the growth of the college system
T A V
SETA offices established and maintained in TVET colleges 5 4 -1
Centre of Specialisation supported 1 1 -
TVET lecturers exposed to the industry through skills programmes 20 11 -9
Managers receiving training on curriculum related studies 10 6 -4
TVET college lecturers awarded bursaries 5 5 -
TVET college infrastructure development (equipment/workshops) 1 1 -
CET college lecturers awarded skills development programmes 5 7 +2
CET college infrastructure development support (equipment/workshops/ connectivity/ICT) 1 1 -
Managers receiving training on curriculum related studies 5 5 -
DESIRED OUTCOME: Increased economical participation of CBOs/NGOs/NPOs/SMMEs within the energy and water sector
T A V
Co-operatives supported with
training interventions or funded10 9 -1
Small businesses supported with
training interventions or funded20 0 -20
People training in entrepreneurship
support to start their businesses5 0 -5
CBOs/NGOs/NPOs supported with
training interventions or funded5 11 +6
DESIRED OUTCOME: Labour force that is updated with current skills required for the sector
T A V
Career development events in
urban areas on occupations in high
demand
15 27 +12
Career development events in rural
areas on occupations in high demand10 37 +27
Career development practitioners
trained80 112 +32
Capacity building workshops on
career development services initiated6 11 +5
Workshops for life orientation
teachers in rural communities3 7 +4
Rural community advertising
campaigns implemented2 4 +2
Career guides distributed 10 000 12 184 +2 184
PROGRAMME 4: QUALITY ASSURANCE
T Target A Achieved V Variance
DESIRED OUTCOME: Updated qualifications that are aligned to the current skills training needs
T A V
Workplace approved 15 3 -12
Applications for certificates
received and processed within
30 days
70% 62% -8%
Qualifications developed as
per industry needs2 2 -
QAS addenda developed on
registered qualifications2 2 -
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STRATEGY TO OVERCOME AREAS OF UNDER PERFORMANCE
2020/21
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%2014/15
29.8%
2015/16
47%
2016/17
49%
2017/18
64%
2018/19
74%
2019/20
69%
6-year review of EWSETA performance against APP targets
From the 2014/15 financial period to 2018/19, the
EWSETA enjoyed steady growth in its performance
against its APP targets, having increased from
29.8% to 74% in 2018/19. Performance in 2019/20
dropped to 69% and in the current period, EWSETA
has achieved a performance of 68% against targets.
The EWSETA embarked on the 2020/21 period
intent on improving on its performance, but the
COVID-19 pandemic, national lockdown and skills
development levy holiday in 2020/21 sought to derail
plans in place to deliver on improved performance.
However, while the SETA has not done as well as
it would have liked to, if considered in context, the
numerous challenges experienced during the year
did not result in a dip in performance one might
have expected and this talks to how the organisation
was able to adapt and respond to COVID-19.
An unfortunate delay in the finalisation and
advertising of the Discretionary Grant (DG) funding
window resulted in the EWSETA being left with
insufficient time to finalise the DG window and
appointment of successful applicants before the
end of the financial period and hence the under
achievement of some targets. To mitigate this in the
future, the EWSETA will advertise its Discretionary
Grant window much earlier in the financial period to
allow sufficient time for the necessary due diligence
and other processes to be completed before the
end of the financial period.
OPERATING MODEL AND ORGANISATIONAL DESIGN
The EWSETA accepts that it cannot use the
COVID-19 pandemic and resultant fallout as the
reason for all its challenges.
The concept of an Operating Model (OM) and
Organisational Design (OD) emerged on the back
of the realisation that the organisation had not
been operating effectively and efficiently. This
was confirmed after conducting an assessment as
management in 2019, and findings were presented
to the new Accounting Authority in 2020. To this end,
the EWSETA is finalising an OM and OD process in
which a high-performance culture will be optimised,
to ensure that services are delivered in the manner
expected by stakeholders and at a level of excellence
that reflects the organisational values.
In line with the change in strategy from being a
target-driven organisation to a high-performance,
impact-driven one, the EWSETA realised that it
required a structure aligned to an operating model
that does away with silo operations, which had been
the case for many years. Furthermore, the EWSETA
realised that a strategic structure as opposed to a
transactional, administratively driven one would
be a key future success factor. To successfully take
its place as an authority that is leading the sector,
as well as to position itself as a skills development
and training thought leader within the energy and
68%
water sector requires a ‘fit for purpose’ organisational
design.
An additional element that spurred management
to relook its operational design was the ongoing
issue around the administrative budget that was
consistently over its allowance. To bring administration
expenditure down and work within the prescribed
10.5%, the EWSETA needs to have an effective and
efficient operating model that will allow for the
elimination of unnecessary additional processes and
duplications and streamline operations.
Over the years the EWSETA has looked at, reviewed,
and tweaked its structure, but it was still not an
effective organisation with little interdepartmental
or cross collaboration taking place.
In April 2020, the Accounting Authority approved an
OM and OD project during the period under review.
Whilst some may view this process as the answer to
many of its challenges as the EWSETA, it is important
to note that this process is really an important first step,
and one of several that needs to be taken if the EWSETA
is intent on reaching the goals it has set for itself over
the 5-year strategic period ending on 31 March 2025.
This important process also seeks to address not
just where skills gaps exist within the organisation,
but also how to better optimise existing skills in
the organisation, especially at the higher levels. In
addition, job profiles and job descriptions that have
previously not been clearly outlined or defined,
often resulting in duplication of responsibilities, will
be addressed as part of the process.
While the intention had been to have the operating
model and OD already approved by the end of March
2021, it is still ongoing. The EWSETA anticipates that
the Accounting Authority will approve the process
and commence implementation during the second
quarter of the 2021/22 financial period, although it
is recognised that something so critical is not to be
rushed.
LINKING PERFORMANCE WITH BUDGETS
2019/20 2020/21
Programme/activity/objective BudgetActual
ExpenditureOver/Under Expenditure Programme/activity/ objective Budget
Actual Expenditure
Over/Under Expenditure
R'000 R'000 R'000 R'000 R'000 R'000Administration 89 891 65 222 18 157 Administration 83 379 53 248 30 131Mandatory Grants 74 103 67 258 6 845 Mandatory Grants 51 872 46 854 5 018Skills planning 15 788 1 871 13 917 Skills planning 9 343 1 271 8 072Discretionary Grants 185 567 211 211 (25 644) Discretionary Grants 130 399 107 669 22 730Special Projects 3 514 (3 514) Special Projects 3 606 (3 606)Career Guidance 1 450 1 356 94 Career Guidance 800 378 422Qualification Assurance 7 736 1 675 6 061 Qualification Assurance 6 580 1 016 5 564
All expenditure for the year (except for special projects) came in under budget. The COVID-19 lockdown impacted the delivery of skills development initiatives and
spending on discretionary grants, career guidance and qualification assurance was below budget as a result. Administration expenses were also below budget,
mainly due to decreased operating activity during the lock-down. While the entity remained active and fixed costs were still incurred, variable costs were saved
due to the closure of EWSETA offices. Additionally, several positions were vacated by staff during the year, reducing the salary bill below budget. Mandatory grant
expenditure is driven by the value of SDL income. Mandatory grant expenditure is driven by the value of levy income and because levy income was below budget
this resulted in reduced mandatory grants expenses to below budget.
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Programme/ Sub-
ProgrammeIntervention
Geographic location
No. of Beneficiaries
Disaggregation of beneficiaries
Total budget allocation per intervention R
‘000
Budget spent per
interventionR ‘000
Contribution to the outputs in
the APP
Immediate Outcomes
Programme 3 COVID-19
Training for
members of
Trade Unions
1 000 5 000 5 000
During the period under review, the EWSETA placed extensive focus on forging partnerships to mitigate the effects of COVID-19. These included partnerships with public research institutions, small and medium enterprises, PSET institutes of learning, government departments and industry bodies. These, and other partnerships, remain an important priority for the
EWSETA going forward, both within a COVID-19 context and EWSETA strategic perspective.
REVENUE COLLECTION
2019/20 2020/21
Source of revenue EstimateActual
collectionOver/Under collection Source of revenue Estimate
Actual collection
Over/Under collection
R'000 R'000 R'000 R'000 R'000 R'000
Levies 352 547 313 374 39 173 Levies 246 783 211 216 35 567
Other income 143 143 Other income 59 59
Interest income 21 809 20 586 1 223 Interest income 15 266 9 355 5 911
Special project 3 514 3 514 Special project 5 151 5151
The entity experienced decreased levy income in the review period due to the four-month skills development levy (SDL) holiday; the fact that some companies
were forced to shut down due to the pandemic and retrenchments in the sector. The three phase Presidential War on Leaks projects that is funded by the DWS and
currently in Phase 2 is moving slowly due to financial constraints at the DWS.
CAPITAL INVESTMENT
The entity did not have any infrastructure projects in progress during the year. The only capital expenditure related to the purchase of computer equipment and is
outlined in the financial statements.
PROGRESS ON INSTITUTIONAL RESPONSE TO THE COVID-19 PANDEMIC
In response to the national disaster that was declared
by the President of South Africa on 15 March 2020,
and the subsequent announcement of a National
Lockdown which commenced on 26 March 2020,
EWSETA put in place various interventions in line
with the risk adjusted strategy that aims to gradually
phase-in economic activity across various sectors.
In response to the pandemic, the following
guidelines were developed:
• COVID-19 Workplace Plan
• Return to Work Protocols
• COVID-19 Travel Guidelines
• COVID-19 Travel Online Feedback Survey Form
• COVID-19 Case Management Guidelines
Monitoring systems put in place:
• Travel survey
• Electronic screening (to access offices of
EWSETA)
• Compliance Reporting
• Business Impact Assessment Tracking Matrix
• Monitoring and Evaluation by the Disaster
Management Committee, Health and Safety
Committee and COVID-19 compliance officer
In addition to the reports prepared for feedback to
the Accounting Authority, EWSETA submitted inputs
to the various DHET COVID-19 requests and surveys
received from the Department that included:
• COVID-19 level of compliance survey inputs
Response to Directive No.6 of 2020
• Comments to the following DHET SETA
COVID -19 Guidelines:
- SETA COVID-19 Workplace Readiness Plan
- High level Risks – COVID-19 SETAs
- Security Services Plan during COVID-19
Between 1 April 2020 and 31 March 2021, five cases
of COVID-19 were reported at the EWSETA with a
100% recovery rate for all cases.
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GOVERNANCE
PART C
Corporate governance is concerned with holding the balance between economic and social goals and between individual and communal goals. The governance framework is there to encourage the efficient use of resources and equally to require accountability for the stewardship of those resources. The aim is to align as nearly as possible the interests of individuals, corporations and society
ADRIAN CADBURY
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52 A N N U A L R E P O R T 2 0 2 0 / 2 1 53A N N U A L R E P O R T 2 0 2 0 / 2 1 53A d a p t a b i l i t y t h r o u g h
COMPOSITION OF EWSETA ACCOUNTING AUTHORITY COMMENCED TENURE 1 APRIL 2020
LIMAKATSO MOOROSIChairpersonDVM, MSc. Agric., Mgmt.
Dev.
SOLOMON BOKABAOrganised EmployerB Juris, LLB, LLM
(Administrative and
Municipal Law)
ESMÉ COETZEROrganised EmployerBA (Hons) (Psychology),
MBL, DBL
LESTER GOLDMANProfessional BodiesDiploma Bus. Mgmt.,
BCom (Acc), MBA, DBA
DUMISANE MAGAGULAOrganised LabourNTC, DipTh
NANDI MALUMBAZOCommunity OrganisationsBSc. (Chem. Biochem.
Microbio.), BSc. (Hons),
MSc. (Synthesis Organic
Chem.), Ph.D (Chem.
Eng.)
MONICA MALUNGAOrganised EmployersBSc., BTech
(Management)
VERENA MEYER-SINGHGovernment DepartmentBSc. Agric. Microbiology,
BSc (Hons) (Water
Utilisation), MSc (Water
Utilisation), MEd Env. Ed.
HILDA MHLONGOGovernment DepartmentBCom, BCom Hons
(Mgmt) (IP), HRM, MBL
NHLANHLENI NGIDIOrganised EmployerBTech (Elec. Eng.), MDP,
MBL
NOMAVA NOBATANAOrganised LabourBA (Communication),
HRM Dip, Hons (IP),
PostGrad Dip. Labour
Law
RUTH NTLOKOTSEOrganised LabourNDip (Analytical Chem),
BA (IR and Political
Studies) BA Hons (Labour
Policy & Globalisation)
KEAGILE PHOLOBAOrganised LabourBA, Higher Education
Diploma, BEd
(Curriculum Design)
NDLELA RADEBEOrganised LabourLabour Law, Labour
Relations
THOMAS WEDDERSPOONOrganised LabourDevelopment
Programme Labour
Relations
BEREAVEMENT NOTICE
Mr John Ndlela Radebe passed away on 4 August 2021. He represented labour on the EWSETA Accounting Authority with distinction since 2018.
This is a man who made an important contribution to the organisation and he will be remembered for his kind, gentle manner and the way in which he always offered encouragement.
May his soul Rest In Peace.
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ACCOUNTING AUTHORITY AND COMMITTEE MEETINGS: RECORD OF ATTENDANCETotal Number of Meetings Held in 2020/21
MEETINGS SCHEDULED AA EXCO ARC FRC GSCScheduled 4 4 3 3 4Special 3 3 3 3 1Strategic Planning 1 – – – –AGM 1 – – – –Induction 1 – 1 – –Strategic Risk Workshop – – 1 – –Accounting Authority Training 2 – – – –
Members of the Accounting Authority and its CommitteesLimakatso Moorosi (Chairperson) 9/12 7/7 – – –Solomon Bokaba 11/12 8/8Esmé Coetzer 11/12 – – 6/6 –Lester Goldman 12/12 7/7 – – 5/5Dumisane Magagula 11/12 7/7 – 5/6 2/5Nandi Malumbazo 12/12 7/7 – – 5/5Monica Malunga 9/12 7/7 – 6/6 –Verena Meyer-Singh 12/12 – – – 5/5Hilda Mhlongo 10/12 – – –Nhlanhleni Ngidi 10/12 6/6 4/5Nomava Nobatana 11/12 – 8/8 – –Ruth Ntlokotse 12/12 – – 6/6 –Keagile Pholoba 6/12 – – – 4/5Ndlela Radebe 10/12 – – 3/5 –Thomas Wedderspoon¹ 7/12 – – – 3/5
Independent Members of the Audit and Risk CommitteeMariana Strydom (Chairperson) 10/12 – 8/8 – –Faizal Docrat – – 8/8 – –Lwazi Giba – – 8/8 – –Sedzani Musundwa 2/12 – 8/8 – –
Co-opted Members of the Finance and Remuneration CommitteeLethabo Manamela² – – – 1/5 –Moshupi Mokgobinyane² – – – 1/5 –
GOVERNANCE INFORMATION
Corporate governance is a system of rules, practices
and processes by which the EWSETA is directed,
controlled and held to account.
In addition to legislative requirements, corporate
governance at EWSETA is applied through precepts
of the SDA and run in tandem with the principles
contained in King’s Report on Corporate Governance.
THE EXECUTIVE AUTHORITY
The Accounting Authority of EWSETA accounts
to the Minister of Higher Education, Science and
Technology, who in turn accounts to Parliament
and the Parliamentary Portfolio Committee on
Higher Education, Science and Technology.
In terms of Section 13 of the enabling legislation,
the Minister must approve the Constitution of the
EWSETA. Thus, in executing accountability and
responsibility functions, the Executive Authority
exercises its powers in terms of the PFMA, the
SDA, the Constitution of EWSETA and any other
applicable legislation.
THE ACCOUNTING AUTHORITY
The Accounting Authority is the governing body
of EWSETA, and members have a collective
responsibility to meet the fiduciary duties enshrined
in the primary legislation and various governance
codes. The composition of the Accounting Authority
complies with the requirements of Section 11 of the
SDA.
In addition to provisions on accountability within the
legislative framework and governance prescripts,
the Accounting Authority has the following
responsibilities:
• To govern and manage EWSETA in accordance
with legislation,
• To set organisational culture,
• To provide policy and strategic direction and
over implementation,
• To review management performance and
oversee risk management,
• To ensure the objectives and functions of
EWSETA comply with the constitutional,
legislative and policy mandates.
THE ACCOUNTING AUTHORITY CHARTER
The EWSETA Constitution serves as the Accounting
Authority charter. The Constitution is to be read in
conjunction with the SDA and other committees’
terms of reference.
COMPOSITION OF THE ACCOUNTING AUTHORITY
The Accounting Authority is constituted and
composed in terms of Section 8(5) of the
Constitution. In terms of Sections 8(2)(d) of the
Constitution, the Accounting Authority may
establish Committees to assist in the execution of
its responsibilities.
During the year under review, leadership attended
and participated in the meetings of the Accounting
Authority and its Committees as shown on the next
page:
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Total Number of Meetings Held in 2020/21Executive Team
Mpho Mookapele (CEO) 12/12 7/7 8/8 6/6 5/5Ineeleng Molete (COO)³ 9/12 6/7 7/8 4/6 4/5Candice Moodley (CSE) 3/12 7/7 8/8 6/6 –Robyn Vilakazi (CFO)⁴ 2/12 1/7 2/8 1/6 –Tsholofelo Mokotedi (AEPRM) 3/12 6/7 7/8 – 4/5
Notes: 1 – Resigned 26 March 2021 | 2 – Appointed January 2021 | 3 – Resigned 31 December 2020 | 4 – Appointed 01 March 2021
The entity has also established a Risk Steering
Committee comprising managers from all branches.
The committee will advise management on the overall
system of risk management. It will also define the risk
appetite and risk tolerance levels for the organisation,
and otherwise contribute to the improvement of risk
management organisation-wide. The internal risk
management processes are driven by the Risk and
Compliance Management function.
The progress of the implementation of mitigation
plans are regularly shared with the relevant
governance structures to monitor the effectiveness
of the system of risk management. Additionally, the
entity has an outsourced internal audit function
reporting directly to the Audit and Risk Committee,
that conducts internal audits in accordance with a
three-year rolling plan.
INTERNAL CONTROL UNIT
The entity has a Risk and Compliance Management
function that actively co-ordinates the management
of risk and implementation, monitoring and
improvement of controls. This includes monitoring
the implementation of recommendations from
internal and external auditors.
In additional to its routine activities, the Risk and
Compliance management function engaged the
services of an independent service provider to
assess the organisation’s risk maturity during the
current year. Their report diagnosed the entity’s risk
management status as ‘defined’. Management have
developed a set of corrective actions with the aim
of moving the organisation’s risk maturity status to
‘managed’ within two years.
INTERNAL AUDIT AND AUDIT COMMITTEES
Internal audit conducts its activities in accordance
with an approved charter aligned to the requirements
of the Institute of Internal Auditors. The objectives
of the Internal Audit Function are, amongst others,
to provide management with reasonable, but not
absolute, assurance that:
• Risks are properly managed;
• Assets are safeguarded;
• Financial and operational information is reliable;
• Operations are effective and efficient; and
• Laws and regulations are complied with
• Safeguard against fraud and corruption,
misstatement, irregular and unauthorised
expenditure is an effective system of internal
control.
The following audits have been performed during
the current year:
Internal Audit
• Audit of Predetermined Objectives
• Information Technology General Control
environment (ITGC) Review
• ICT Governance Review
• Internal Financial Controls Review
• Supply Chain Management
• Projects, Contracts & Commitments
• Review of Annual Financial Statements
External Audit
• Interim audit
• Final audit
The EWSETA has an Audit and Risk Committee, which
is a sub-committee of the Accounting Authority.
The Audit and Risk Committee’s duties are in line
with the PFMA. Amongst others, the key duties of
ARC is to review and make recommendations in
respect of:
• The functioning and overall-efficiency and
effectiveness of the internal control system;
• The functioning of the service provider
appointed by the Accounting Authority to
perform the internal audit function;
• The risk areas of EWSETA’s operations, which
are to be covered by the scope of internal and
external audits;
• The adequacy, reliability and accuracy of the
financial information provided to the Accounting
Authority;
• The scope and results of the external audit and its
cost-effectiveness, as well as the independence
and objectivity of the external auditors;
REMUNERATION OF THE ACCOUNTING AUTHORITY
Members of the Accounting Authority and its
committees receive an allowance for attending
and contributing to official meeting. The rates
are aligned with remuneration level sub-category
S in the “Circular from the National Treasury on
Adjustment of Remuneration Levels”, as determined
by the Minister of Finance and approved by
the Minister of Higher Education, Science and
Technology.
According to Circular 2 on “Remuneration Tariffs
for Accounting Authority and Committee members
of SETAs and non-SETAs that report to the DHET”,
daily rates apply for attending and preparing for
Accounting Authority and committee meetings.
Ministerial appointments and independent
committee members receive allowances. Members
who are public or government employees are not
remunerated for attending meetings unless they
take leave. Relevant taxes apply.
MINIMISING CONFLICT OF INTEREST
Members of the Accounting Authority and its
committees are required to complete and sign
an annual declaration of interest form to declare
potential conflicts with the business of EWSETA.
This practice is an agenda item before meetings
commence, where all members are requested to
declare potential conflict of interest against any
agenda item, and where members have conflict,
they are recused from the meeting.
COMPANY SECRETARY
The services of a company secretary are outsourced
to a service provider who advises the Accounting
Authority on governance protocols, obligations
and compliance with applicable legislation. The
company secretary coordinates the activities and
provides full support to the Accounting Authority of
EWSETA and its committees.
RISK MANAGEMENT AND COMPLIANCE
The EWSETA Risk Management policy and strategy
describes a structured approach to risk management,
to ensure that the organisation is able to formulate
and execute the strategy effectively and efficiently.
EWSETA adopts the three lines of defence approach
to risk management. Line Management is the first line
of defence, the Risk and Compliance Management
function is the second and independent assurance
providers is the third. Assurance providers are internal
and external auditors.
Risks and mitigation plans are continually monitored
and reviewed; this includes the identification of
emerging risks. Management are responsible for
identifying risks and mitigation plans on a quarterly
basis. A strategic risk workshop is conducted
annually at an Executive level to identify risks that
impact on the achievement of organisational
objectives.
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58 A N N U A L R E P O R T 2 0 2 0 / 2 1 59A N N U A L R E P O R T 2 0 2 0 / 2 1 59A d a p t a b i l i t y t h r o u g h
• The cooperation and coordination between the
internal and external audit functions, and their
cooperation and coordination, pertaining to the
management of EWSETA;
• The adequacy and effectiveness of the risk
management processes followed and the
development, maintenance and enhancement
of fraud prevention plans;
• The effectiveness of the system for monitoring
compliance with laws, regulations and policies,
and the results of management’s investigation
and follow-up action (including disciplinary
action) of any instance of non-compliance; and
• EWSETA’s IT controls and IT Governance.
• Review the annual financial statements and
establish whether the statements have been
prepared in accordance with the PFMA and
related Treasury Regulations, including the
applicable accounting framework.
COMPLIANCE WITH LAWS AND REGULATIONS
EWSETA operates within a diverse regulatory
environment of government legislation. As such,
the organisation has a compliance universe in
place. The universe has been designed to provide
EWSETA management with guidance on the
compliance requirements applicable to the entity.
This assists management to identify and manage
Legislative and Regulatory Compliance risks. The
Risk and Compliance Management function has
a professional subscription to receive updates on
legislation that might have an impact on EWSETA
and uses this to maintain the compliance universe.
The organisation also tracks the implementation
of mitigations and recommendation for non-
compliance that are raised by the Auditor General.
Accounting Authority and EXCO members have
also been trained by IoD SA in terms of corporate
governance.
FRAUD AND CORRUPTION
EWSETA has conducted a fraud risk assessment and
has in place a fraud prevention plan which sets out
the annual fraud risk management implementation
plan. The plan is developed to give effect to
the Whistle-Blowing policy and is reviewed and
approved annually by the Audit and Risk Committee
and approved by the Accounting Authority. The
plan provides mechanisms for the prevention, early
detection and investigation of irregularities.
The entity has an Anonymous Hotline that enables
all stakeholders to report concerns about unethical
or unlawful behaviour at EWSETA. The hotline details
are posted on the website, tender documents and
are periodically communicated to all stakeholders.
All irregularities reported through reporting channels
are investigated and appropriate action is taken
to address them. The Audit and Risk Committee
monitors the calls to the hotline on a quarterly basis.
Employees are further encouraged to report
unethical behaviour without fear of reprimand
or victimisation. All reports are investigated and
appropriate action is taken to address them.
MINIMISING CONFLICT OF INTEREST
The entity has established several mechanisms to
prevent conflicts of interest. Employees perform
an annual declaration of interests. Governance
committee members also perform declarations of
interest annually and at the start of each meeting.
In the procurement process, additionally, Supply
Chain Management function employees and
members of all bid committees declare their
interests at every meeting. The Standard Bidding
Document 4 (SBD 4) forms part of the mandatory
documents to be signed by every potential bidder.
SBD 4 clearly outlines activities that might lead to
conflict and it provide an opportunity for bidders
to declare the interests upfront. Failure to declare
correctly may lead to the bid being disqualified and
reported to National Treasury for blacklisting.
EWSETA’s ethics are supported by a set of values
that define the EWSETA ethics charter (code of
conduct). The EWSETA values are:
• Respect
• Integrity
• Teaming
• Excellence
B-BBEE COMPLIANCE PERFORMANCE INFORMATION
Criteria Response Discussion
Determining qualification criteria for the issuing of licences,
concessions or other authorisations in respect of economic activity in
terms of any law?
Y All bidding documents have an evaluation criteria embedded. This sets
out the criteria for all evaluation stages from pre-evaluation up to the
pricing stage
Developing and implementing a preferential procurement policy? N The policy has not been developed but it has been identified in the
BBBEE strategy as a deliverable that needs to be in place prior to the
next BBBEE verification
Determining qualification criteria for the sale of state-owned
enterprises?
N This is not applicable to EWSETA
Developing criteria for entering into partnerships with the private
sector?
N A partnership model is being developed. Criteria will be developed to
feed into the partnership model
Determining criteria for the awarding of incentives, grants and
investment schemes in support of Broad Based Black Economic
Empowerment?
N The criteria have not been developed but it has been identified in the
BBBEE strategy as a deliverable that needs to be in place prior to the
next BBBEE verification
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60 A N N U A L R E P O R T 2 0 2 0 / 2 1 61A N N U A L R E P O R T 2 0 2 0 / 2 1 61A d a p t a b i l i t y t h r o u g h
We are pleased to present the Audit and Risk
Committee (ARC) report for the financial year
ended 31 March 2021.
ARC RESPONSIBILITY
This report serves to confirm that the ARC has
complied with its responsibilities arising from
section 51(1)(a)(ii) of the Public Finance Management
Act (PFMA) and Treasury Regulation 27.1.1. The ARC
also confirms that it has adopted formal terms of
reference as its Audit and Risk Committee Charter,
has regulated its affairs in compliance with this
charter and has discharged all its responsibilities as
contained therein.
MEMBERS OF THE ARC
The ARC is comprised of two members representing
the accounting authority an independent chairperson
and three independent members, namely:
Ms. Mariana Strydom Independent
Chairperson
Mr. Faizal Docrat Independent Member
Mr. Lwazi Giba Independent Member
Ms. Sedzani Musundwa Independent Member
Mr. Solomon Bokaba Member of the
Accounting Authority
(Organised Employers)
Ms. Nomava Nobatana Member of the
Accounting Authority
(Organised Labour)
The committee is satisfied that its members possess
the requisite skills, knowledge and experience to
fulfil the responsibilities of the ARC. The Auditor-
General of South Africa (AGSA) confirms in the
management report that ARC is an assurance
provider of the EWSETA.
MEETINGS HELD BY THE ARC
The members of ARC were inducted and onboarded
on 18 September 2020. They all attended the
strategic risk workshop on 9 November 2020.
Further to this, the members attended 6 scheduled
meetings during the financial year ending 31 March
2021 as reflected in the table below:
Member Name
24
Ju
l 20
22
Se
p 2
0
28
Oct
20
17 N
ov
20
18 F
eb
21
17 M
ar 2
1
Mariana Strydom ü ü ü ü ü ü
Solomon Bokaba ü ü ü ü ü ü
Nomava Nobatana ü ü ü ü ü ü
Faizal Docrat ü ü ü ü ü ü
Sedzani Musundwa ü ü ü ü ü ü
Lwazi Giba ü ü ü ü ü ü
THE EFFECTIVENESS OF INTERNAL CONTROLS
The ARC confirms that the system of internal
controls applied by the entity over financial and
risk management is effective and efficient, and
compliant with the PFMA. The internal controls that
were not effective related to the projects, contracts
and commitments, as reported by internal audit.
FINANCIAL MANAGEMENT ENVIRONMENT
The ARC noted that the financial management
environment had been strained due to ongoing
health issues of key staff members, resulting
in frequent unplanned sick days and reduced
productivity during the course of the financial year.
With the audit undertaken in a level 4 lockdown,
due to the peak of the third wave of Covid-19,
management was challenged to implement
alternative ways of working, providing additional
supporting documentation, addressing findings
and simultaneously ensuring that they adhered to
the agreed upon response times of AGSA.
EVALUATION OF ANNUAL FINANCIAL STATEMENTS
The ARC has:
• Reviewed and discussed the audited annual
financial statements to be included in the annual
report, with the AGSA.
• Reviewed the AGSA’s management report and
management’s response thereto.
• Reviewed the entity’s compliance with legal and
regulatory provisions.
• Reviewed the audited information on
predetermined objectives to be included in the
annual report.
• Reviewed significant adjustments resulting from
the audit.
• The quality and timeliness of the financial
information availed to the audit committee
for oversight purposes during the year such
as interim financial statements, management
accounts and quarterly reports before
submission to National Treasury.
INTERNAL AUDIT
The ARC is satisfied that the outsourced internal
audit function operated effectively and that it has
addressed the risks pertinent to the entity. The
management report of the AGSA confirms that
internal audit is an assurance provider.
AUDITOR-GENERAL OF SOUTH AFRICA
The ARC concurs with and accepts the opinion
expressed by the Auditor-General on the annual
financial statements. The ARC is of the opinion
that the audited annual financial statements be
accepted and read together with the report of the
Auditor-General.
Without qualifying the above statement, the
significant impairment of a receivables balance on
the Statement of Financial Position raised from the
forensic reports is noteworthy for this report.
On behalf of the Audit and Risk Committee:
Ms. M. StrydomChairperson of the Audit and Risk Committee
Good corporate governance is not negotiable and it depends on the ability by management and those charged with governance to takeresponsibility
MARIANA STRYDOM, CHAIRPERSON OF THE AUDIT AND RISK COMMITTEE
AUDIT AND RISK COMMITTEE REPORT
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HUMANRESOURCES
PART D
A healthy corporate culture is built through proper management techniques put into action, which in turn aids in shaping a peacefully coherent work environment with healthy interactions capable of drawing out the maximum potential from the employed
HENRIETTA NEWTON MARTIN
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Performance Management remains an invaluable tool to monitor and measure our progress towards organisational goals. This function enables and supports one of EWSETA’s strategic objectives of developing a High-Performance Culture that is largely based on the EWSETA’s Respect – Integrity – Teaming – Excellence (RITE) values
CANDICE MOODLEY, CORPORATE SERVICES EXECUTIVE
HUMAN RESOURCES REPORT
The Human Resources department faced a series of
serious challenges during the period under review.
We started the year severely short of physical
resources with a number of vacancies in key
positions, leaving many of the organisational
branches under capacitated. We had anticipated
filling these key vacancies, specifically recruiting
the critical skills needed to close the gap and create
management stability within the organisation.
This already pressing challenge was further
impacted by the national lockdown, that resulted in
a hold on all recruitment for some time. This lengthy
period created backlogs and work pressure among
the staff who had to carry an additional workload.
The stressed environment then overflowed into the
work culture, severely effecting staff morale, which
was reflected in the low employee engagement
scores.
By the time SETAs were once again able to
commence recruitment activities, the EWSETA had
embarked on an operating model and intensive
organisational design (OD) project that brought with
it a state of flux in that we did not want to appoint
on a permanent basis for many of the positions
because ultimately, the OD would have an impact
on the structure.
We sought to ‘fill the pressing gaps’ by employing
the skills we required on a temporary or contractual
basis, but response from the market was extremely
poor, which was to be expected given that highly
skilled individuals do not want to leave the security
of a permanent job for a temporary one. Despite
the challenges HR had from a resource perspective
during this period, we managed to seamlessly
implement our day-to-day HR activities and have
adapted well to the remote working environment,
while still assisting the management team and staff
with their human resource needs.
During this reporting period, we had 69 members
of staff of which eight are in the regional offices,
and managing to contain the pandemic is an
achievement of which we can be justly proud.
HR was part of the Disaster Management Committee,
established immediately when a national state of
disaster was declared and of which I was Chair. It is
a large committee, and represented by all branches
across the organisation. Weekly meetings were held
to address the numerous aspects of dealing with the
pandemic, and this included the development of
several critical documents including our Workplace
Plan.
In addition, we developed an online COVID
screening platform form for our staff and
stakeholders, COVID-19 travel guidelines for staff,
COVID-19 case management guidelines and
we conducted an OHS assessment of the office
environment to assess our levels of compliance
around COVID regulations, as per the Disaster
Management Act. Any non-compliance areas were
immediately addressed and resolved.
We procured the requisite PPE, as well as having
a compliance officer who provides a compliance
and COVID-19 update report on a weekly basis.
Whilst staff development and training will always
be a priority for the organisation, in the year under
review, it was not something that we were able to
drive robustly, Here the target was not achieved
which was mainly as a result of a very disruptive
learning environment, where before training was
predominately classroom based, the lockdown
required adaptability to more online learning
approaches for personal development and as we
know, there are those who thrive in this environment
and those who do not. While some staff remained
committed to self-development others, perhaps for
circumstances beyond their control, lost motivation.
On the positive side, some of our staff who
were undertaking a Human Resources degree
at Northwest University graduated during this
challenging time.
We continued to strengthen the relationship with
our wellness partner ICAS to provide ongoing
support to employees dealing with challenges
and difficulties. We launched monthly ‘Staff
Connect Sessions’ that not only serve to improve
communication within the organisation, but also
drive and develop knowledge on the energy and
water sectors to improve our service delivery to all
our Stakeholders. These sessions allow us to express
our appreciation and recognition to our staff for the
dedication and commitment they possess with and
also provide staff with a platform to raise matters
that concern them.
Performance management remains an invaluable
tool to monitor and measure our progress towards
organisational goals. This function enables and
supports one of EWSETA’s strategic objectives of
developing a High-Performance Culture that is
largely based on the EWSETA’s Respect – Integrity –
Teaming – Excellence (RITE) values. Through living
our RITE values, we believe that we will be able to
instill a culture of ownership, accountability and
impact for every action taken across every level of
operation.
Our duty to champion all EWSETA policies to protect
both the employer and employee relationship
remained a key focus for the HR Department. This
included the update of all HR policies to enable a
fair and professional Labour Relations environment.
I am also pleased to report that we have developed a
constructive relationship with our recognised union
SASAWU and have together, through our signed
Recognition Agreement, managed to navigate a
number of labour issues in the period under review.
The union is active in all our HR Committees
including our Training & Development Committee,
Employment Equity Committee, Performance
Moderation Committee and are members of the
Operating Model and Organisational Design Project
Steering Committee.
LOOKING TO THE FUTURE
A robust employee engagement strategy has been
developed and will be implemented in the coming
year.
As part of the OD process, we are undertaking a
skills audit that will help us identify the skills gaps
that we have in the organisation that may limit
us from reaching our full potential, and possibly
hamper our operating model’s effectiveness. Once
we are able to determine the extent of the skills
required for our future ‘to be’ state, we will develop
a range of interventions to steadily close that skills
gaps and bring in the competencies required for us
to be an effective ‘Authority’.
The HR Department is on an exciting journey and will
have a key role to play in ensuring the organisation
is capacitated with the right to assess skills that will
see the EWSETA reach its true potential and achieve
success in establishing itself as an authority in South
Africa’s energy and water sector.
Candice MoodleyCorporate Services Executive
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PERSONNEL COST BY PROGRAMME
ProgrammePersonnel Expenditure
(R ‘000)
Personnel Expenditure as a
% of total expenditureNo of Employees
Average personnel cost per
employeeAdministration 20 079 51.61% 27 743Special Projects (War on Leaks) 3 212 8.26% 9 356Discretionary Grant Projects 15 617 40.14% 33 473Total 38 908 100% 69 563*
*This figure does not reperesent a total, but is rather the average cost per employee based on number of employees in relation to personnel expenditure
PERSONNEL COST BY SALARY BAND
Level Personnel Expenditure
(R ‘000)
% of personnel expenditure
to total personnel costNo of employees
Average personnel cost per
employeeTop Management 4 200 10.80% 3 1 400Senior Management 14 610 37.55% 15 974Professional Qualified 9 344 24.02% 16 584Skilled 2 360 6.07% 5 472Semi-skilled 8 370 21.51% 27 310Unskilled 22 0.05% 3 5Total 38 908 69 563
PERFORMANCE REWARDS
Performance Rewards
(R ‘000)
Personnel Expenditure
(R ‘000)
% of perfromance rewards
to total personnel costTop Management 119 4 201 10.79%Senior Management 186 14 610 37.54%Professional Qualified 234 9 344 24%Skilled 47 2 360 6.06%Semi-skilled 196 8 391 21.56%Unskilled - - -Total 782 38 908
TRAINING COSTS
Personnel Expenditure
(R ‘000)
Training Expenditure
(R ‘000)
Training expenditure as
a % of Personnel cost
No of employees
trained
Average training cost
per employee (R ‘000)Operations 17 493 234 1.3% 6 39Planning, Reporting & Monitoring 3 806 114 2.9% 4 28Finance 7 017 33 0.4% 4 8Corporate Services 4 527 29 0.6% 1 29Office of the CEO 6 066 12 0.3% 4 3Total 38 908
EMPLOYMENT CHANGES
Level Employment at
beginning of periodAppointments Terminations
Employment at end of
period
Top Management 0 1 0 1
Senior Management 3 1 2 2
Professionally Qualified 14 2 2 14
Skilled 49 0 1 48
Semi - Skilled 0 5 1 4
Unskilled 0 0 0 0
TOTAL 66 9 6 69
HUMAN RESOURCES OVERSIGHT STATISTICS
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EQUITY TARGETS, EMPLOYMENT EQUITY: MALE
LevelAfrican Coloured Indian White
Current Target Current Target Current Target Current Target
Top Management 0 0 0 0 0 0 0 0
Senior Management 0 0 0 0 0 0 0 0
Professionally Qualified 5 0 0 0 0 0 0 0
Skilled 16 0 0 0 1 0 0 0
Semi-skilled 0 0 0 0 0 0 0 0
Unskilled 0 0 0 0 0 0 0 0
TOTAL 21 0 0 0 1 0 0 0
EQUITY TARGETS, EMPLOYMENT EQUITY: FEMALE
LevelAfrican Coloured Indian White
Current Target Current Target Current Target Current Target
Top Management 1 0 0 0 0 0 0 0
Senior Management 0 0 1 0 1 0 0 0
Professionally Qualified 6 0 0 0 0 0 1 0
Skilled 34 0 2 0 0 0 1 0
Semi-skilled 0 0 0 0 0 0 0 0
Unskilled 0 0 0 0 0 0 0 0
TOTAL 41 0 3 0 1 0 2 0
DISABLED
LevelAfrican Coloured Indian White
Current Target Current Target Current Target Current Target
Top Management 0 0 0 0 0 0 0 0
Senior Management 0 0 0 0 0 0 0 0
Professionally Qualified 0 0 0 1 0 0 0 0
Skilled 0 0 0 0 0 0 0 0
Semi-skilled 0 0 0 0 0 0 0 0
Unskilled 0 0 0 0 0 0 0 0
TOTAL 0 0 0 1 0 0 0 0
REASONS FOR TERMINATIONS
Reason Number% of total number of
staff leaving
Death 0 0%
Resignation 4 6%
Dismissal 0 0%
Retirement 0 0%
Ill-health 0 0%
Expiry of contract 0 0%
Other 1* 0%
TOTAL 5 6%
* Student Intern who had to go back to course of study hence our labour
turnover remains 6% in terms of resignations received
LABOUR RELATIONS: MISCONDUCT & DISCIPLINARY ACTION
Nature of disciplinary action Number
Verbal warning 1
Written warning 3
Final written warning 3
Dismissal 0
TOTAL 7
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FINANCIALINFORMATION
PART E
Passion is critical in the roles that we fulfil in government – working with limited budgets, often in difficult circumstances, trying to better the lives of citizens through what we do, is challenging, and only a passion for creating a better future will see us in this ambition
KIMI MAKWETU
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ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
This past year, the finance branch of the EWSETA
adopted a flexible and adaptive approach to
successfully navigate the challenges that disrupted
our processes. While some of this adaptability was
intended and planned, some was forced on us, but
all were necessary for us to function optimally.
OVERVIEW OF THE YEAR
Adapting to the different working environment in
the wake of the pandemic necessitated rethinking
and re-evaluating how the entire organisation
conducted business, it is finance that is both the start
and the end point of the organisation’s processes.
Acclimatising to the changed environment took
a conscious mind shift, we had to consider
how processes might be changed and adapted and,
in many cases, made more efficient, especially when
working remotely formed part of the equation. We were
forced to look within, to explore the legal requirements
to ensure continuity and efficiencies and to investigate
what was and wasn’t possible operationally.
We lived the very aptly selected current theme of
Adaptability through Disruption.
In the initial stages of the lockdown, it was a process
of continual improvement, learning and adapting.
We were required to become more agile and flexible
because the ‘old way’ of working was no longer an
option and we very quickly had to embrace the
‘New Normal’.
It was a trying time for everyone and as is the
case with anything that is new, it was a case of
trial and error, what would work and what could
be relooked, until a happy medium was decided
on that functioned efficiently and produced the
desired results. It was a very necessary struggle that
we had to endure.
The EWSETA operates in a very legislated environment,
and in the early stages of the lockdown various
amendments to legislation were introduced, flowing
from the Disaster Management Act. This included
an absolute exception, namely moving previously
legislated deadlines which, prior to the national
lockdown, was unheard of.
In addition, previously legislated processes around
tenders — where the physical documents are
delivered — had to be relooked. New legislation
was issued prohibiting delivery until further notice,
which in turn caused a backlog in certain processes
that were still due to take place, and the domino-
effect impacted on the finance branch.
New legislation around timelines also changed
the biggest deadline, the submission of statutory
financial statements on the 31st of May. We were
forced to change and adapt the familiar rhythm,
routine and expectations to which we had become
used to around submissions.
People were constantly having to update to the
new deadlines, ensure priorities were accurately
planned and adhered to, in line with what needed
to be done. All these disruptions to how we were
used to working inevitably affected performance.
To compound these challenges, last year the
President announced the implementation of a four-
month Skills Development Levy (SDL) payment
holiday as a relief measure for businesses during the
lockdown period.
This generous gesture impacted severely on the
EWSETA’s revenue and our anticipated income for
the 2020/21 period of R370 million, was reduced
to R246 million. We were required to revise our
anticipated targets for the year and, with a reduced
budget we had to make some concessions as to
where the money could best be allocated and
collected.
Nevertheless, on a level, this unforeseen event was
almost serendipitous. The EWSETA is in the process
of undergoing significant organisational redesign,
involving a very comprehensive process that
encompasses many different areas of the business,
and the unanticipated levy holiday forced us to fast-
track the organisational redesign process and to
explore how we can better do things going forward.
We need to be financially sustainable, and reliance
on income that wasn’t forthcoming obviously
impacted on this principle: suddenly we were
minus the skills levy for four months, an unexpected
occurrence. Thus, we were galvanised into
adopting a different mind-set and exploring means
of surviving the very real shortfall. We had to assess
how to operate differently, specifically being more
prudent with expenditure and funds allocation, in
line with our organisational redesign process.
Adapting to the unexpected and unforeseen
became a reality these past twelve months, and
we were forced to become very smart — very
quickly! There was no time for complacency and
initiative was the name of the game henceforth.
Into this exciting time, I took on my role of Chief
Financial Officer.
NEW ROLE, NEW VISION
Since my appointment as CFO in March 2021, my
vision for the finance branch has been evolving,
and while I am putting realistic measures and
milestones in place to align the branch with the
new organisational design, I have realised, not
everything can be achieved within one financial
year, regardless of enthusiasm. It is unrealistic to
embrace a new role believing that I can change
everything overnight; it is a slow, defined, and
dedicated process to impact the branch positively
— and in a sustainable manner.
The finance branch’s contribution to achieving the organisation’s vision is to align ourselves with the changes in the organisation that come from defining us as an authority and operating as such. To this end, we must be onboard with our internal processes, which will be changing in terms of the way that we operate, what we actually do, where our focus will be and to explore how to fast-track and expedite processes, so that we are not an impediment to becoming an authority, but rather an asset
ROBYN VILAKAZI, EWSETA CFO
REPORT BY THECHIEF FINANCIAL OFFICER
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ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
This is especially true being at the helm of a branch
with a medley of personalities, skills and abilities
under my watch. Not only do I need to guide,
nurture and build my team, but they too need to
develop trust in my skills, confidence in my work
ethic and my vision for the branch, and ultimately,
benefit and serve the EWSETA, through team
collaboration and support for each other.
Also, our training and communication needs to
improve and that is on my list of items to address
this coming financial year.
I aim to build towards a three-year vision that will
follow the principle of ‘ leave the finance branch
better than you found it and be remembered for the
positive impact you made’. Only then will the branch
meet its goal to align with the new organisational
design that is underway.
FINANCIAL CHALLENGES AND SOLUTIONS
EWSETA’s finances have a long history of exceeding
the allocated 10.5% administration budget and,
while measures have been taken in the past that
might have been appropriate at the time, the issue
remains a systemic challenge, impacting negatively
on the organisation. Therefore, the greatest change
that we are making is to address this challenge
head-on within the organisational design process,
namely, to stay within budget by looking at more
competent, cost-efficient, and cost-effective ways
of delivering on our operations.
On a day-to-day basis, while we practise strict
cost-effective procedures, adhering to limits as
determined by National Treasury, we aim to make a
fundamental shift in the way that we do business.
Our aim is to become the authority that delivers on
our mandate, exploring opportunities for cost saving
in the organisation and then implementing them.
We have also taken a very strong stance on
consequence management around historical
irregular expenditure. Deep thought goes into the
appropriate consequence management for each
instance, including considering what the role of
the person is in the organisation and if the incident
is a repeat offence, as well as the value and
nature of the transgression in question. It is about
appropriate accountability, with the aim of serving
as a deterrent and to give any potential offender
cause to pause.
Again, adequate organisational training could equip
us to identify when a situation of irregular expenditure
could arise and help us as an organisation, to avoid it.
An emerging challenge over the year under review,
has been filling personnel vacancies. Owing to
our organisational redesign process, we have not
been rehiring into all vacant positions and, because
finance and supply chain management work in
tandem with the rest of the organisation, if a position
falls vacant and remains so, it poses a challenge to
keep certain supply chain and financial processes
moving smoothly.
In addition, the onset of the pandemic exposed
challenges with staff transitioning to working
remotely. This included the unfamiliar process
of relying closely on electronic documentation
and storage processes, on which the smooth
functioning of the finance branch and supply chain
management are absolutely dependent, specifically
for all-important record keeping.
From a supply chain management side, we have
improved incrementally in our operations on a year-
on-year basis, including the period under review.
For example, while a fair share of our irregular
expenditure is historical, we are steadily incurring a
lot less incrementally and this includes fruitless and
wasteful expenditure.
We are also fortunate in that our supply chain
manager ensures ethical operations with strict
adherence to supply chain compliance through his
team of competent and knowledgeable staff.
However, continuous improvement is important,
and the key to maintaining this is through creating
more training opportunities and being more visible
in our organisational communication around ethics,
trust, accountability, and responsibility.
I believe this approach will contribute towards
the high-performance culture that the EWSETA is
striving towards.
OUTLOOK FOR THE NEXT 12 MONTHS
We are already looking at rebuilding based on the
organisational redesign project, actively working at
achieving our targets.
While we do expect some permanent impact
resulting from COVID-19 going forward, the fact
remains that the provision of water and energy
services are essential.
In the energy space, there is so much happening in
renewable energy, green energy, and it is chartered
in our national plans that investment in the energy
sector will drive economic growth. So, within the
next 12 months we may not necessarily recover
fully, but beyond, in the medium to long term, we
definitely expect our finances to recover.
I anticipate that within the next 12 months, exceeding
the 10.5% administration public is still going to be a
challenge for us and we are not going to overcome
it in this financial year. However, in the medium
term as we start to implement the organisational
redesign process, I am confident that we will make
headway in that area.
Looking ahead, in both the long and short-term,
we are definitely economically viable. Every year
we perform a going concern assessment to
assess whether we think that we will continue to
be economically sustainable for the coming 12
months and beyond, and the results of the latest
assessment found it to be the case, based on our
large, accumulated surpluses and cash balances.
In fact, should it be the case, we are well-positioned
to pay every one of our contracts in full, just based
on the money in the bank, with some to spare,
discounting the incoming levies as from April 2021.
We are always looking at ways to improve or to
ensure that we stay economically viable, that we
stay in our sound financial position.
Adaptability was definitely a skill that we developed
specifically during the past year, learning how to
pivot and change when needed. And, while we
didn’t necessarily start the year with this skill, we
certainly have it now!
ACKNOWLEDGMENTS AND THANKS
I would like to acknowledge the governance
bodies with whom I deal so closely, the Accounting
Authority, the Audit and Risk committee and our
Finance and Remuneration Committee. In my short
tenure to date, the guidance, support and input that
they provide has really been invaluable.
To my fellow executives, I thank you for your honest
and knowledgeable contributions. It is valuable to
be part of a group of people who are aligned in
thinking, yet have different and varied approaches
to challenges which are shared with respect and
decorum. I have huge admiration for your input,
quality of interactions and collaboration.
I thank the EWSETA people for the commitment and
resilience shown over this challenging and trying
period and I look forward to the exciting journey
ahead.
Robyn VilakaziEWSETA CFO
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ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
Report of the Auditor-Generalto Parliament on Energy and Water Sector Education and Training Authority
Report on the audit of the financial statements
Opinion
1. I have audited the financial statements of
the Energy and Water Sector Education and
Training Authority (EWSETA), set out on pages
82 to 131, which comprise the statement
of financial position as at 31 March 2021,
the statement of financial performance,
statement of changes in net assets, cash
flow statement and statement of comparison
of budget and actual amounts for the year
then ended, as well as notes to the financial
statements, including a summary of
significant accounting policies.
2. In my opinion, the financial statements
present fairly, in all material respects, the
financial position of the Energy and Water
Sector Education and Training Authority as at
31 March 2021 , and its financial performance
and cash flows for the year then ended, in
accordance with the Standards of Generally
Accepted Accounting Practice (Standards of
GRAP) and the requirements of the Public
Finance Management Act 1 of 1999 (PFMA)
and the Skills Development Act 97 of 1998
(SDA).
Basis for opinion
3. I conducted my audit in accordance with the
International Standards on Auditing (ISAs).
My responsibilities under those standards
are further described in the auditor-general’s
responsibilities for the audit of the financial
statements section of my report.
4. I am independent of the public entity
in accordance with the International
Ethics Standards Board for Accountants’
International code of ethics for professional
accountants (including International
Independence Standards) (IESBA code) as
well as other ethical requirements that are
relevant to my audit in South Africa. I have
fulfilled my other ethical responsibilities in
accordance with these requirements and the
IESBA code.
5. I believe that the audit evidence I have
obtained is sufficient and appropriate to
provide a basis for my opinion.
Emphasis of matter
6. I draw attention to the matter below. My
opinion is not modified in respect of this
matter.
Restatement of corresponding figures
7. As disclosed in note 30 to the financial
statements, the corresponding figures for 31
March 2020 were restated as a result of an
error in the financial statements of the public
entity at, and for the year ended, 31 March
2021.
Responsibilities of the accounting authority for the financial statements
8. The accounting authority is responsible for
the preparation and fair presentation of the
financial statements in accordance with the
Standards of GRAP and the requirements
of the PFMA and SDA, and for such internal
control as the accounting authority
determines is necessary to enable the
preparation of financial statements that are
free from material misstatement, whether
due to fraud or error.
9. In preparing the financial statements, the
accounting authority is responsible for
assessing the public entity’s ability to continue
as a going concern, disclosing, as applicable,
matters relating to going concern and using
the going concern basis of accounting
unless the appropriate governance structure
either intends to liquidate the public entity
or to cease operations, or has no realistic
alternative but to do so.
Auditor-General’s responsibilities for the audit of the financial statements
10. My objectives are to obtain reasonable
assurance about whether the financial
statements as a whole are free from material
misstatement, whether due to fraud or error,
and to issue an auditor’s report that includes
my opinion. Reasonable assurance is a high
level of assurance but is not a guarantee that
an audit conducted in accordance with the
ISAs will always detect a material misstatement
when it exists. Misstatements can arise from
fraud or error and are considered material
if, individually or in aggregate, they could
reasonably be expected to influence the
economic decisions of users taken on the
basis of these financial statements.
11. A further description of my responsibilities
for the audit of the financial statements is
included in the annexure to this auditor’s
report.
Report on the audit of the annual performance report
Introduction and scope
12. In accordance with the Public Audit Act 25
of 2004 (PAA) and the general notice issued
in terms thereof, I have a responsibility to
report on the usefulness and reliability of the
reported performance information against
predetermined objectives for selected
programmes presented in the annual
performance report. I performed procedures
to identify material findings but not to gather
evidence to express assurance.
13. My procedures address the usefulness and
reliability of the reported performance
information, which must be based on
the public entity’s approved performance
planning documents. I have not evaluated
the completeness and appropriateness of
the performance indicators included in the
planning documents. My procedures do not
examine whether the actions taken by the
public entity enabled service delivery. My
procedures do not extend to any disclosures
or assertions relating to the extent of
achievements in the current year or planned
performance strategies and information
in respect of future periods that may be
included as part of the reported performance
information. Accordingly, my findings do not
extend to these matters.
14. I evaluated the usefulness and reliability
of the reported performance information
in accordance with the criteria developed
from the performance management and
reporting framework, as defined in the
general notice, for the following selected
programme presented in the public entity’s
annual performance report for the year
ended 31 March 2021:
Programmes Pages in the annual performance report
Programme 3 —
learning programmes
and projects
141 - 155
15. I performed procedures to determine
whether the reported performance
information was properly presented and
whether performance was consistent with the
approved performance planning documents.
I performed further procedures to determine
whether the indicators and related targets
were measurable and relevant, and assessed
the reliability of the reported performance
information to determine whether it was
valid, accurate and complete.
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ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
16. I did not identify any material findings
on the usefulness and reliability of the
reported performance information for this
programme:
• Programme 3 — learning programmes
and projects
Other matter
17. I draw attention to the matter below.
Achievement of planned targets
18. Refer to the annual performance report
on pages 134 - 156 for information on the
achievement of planned targets for the year
and management’s explanations provided
for the under/over achievement of targets.
Adjustment of material misstatements
19. I identified material misstatements in the
annual performance report submitted for
auditing. These material misstatements were
in the reported performance information
of Programme-3 learning programmes and
projects. As management subsequently
corrected the misstatements, I did not raise
any material findings on the usefulness
and reliability of the reported performance
information.
Report on the audit of compliance with legislation
Introduction and scope
20. In accordance with the PAA and the general
notice issued in terms thereof, I have a
responsibility to report material findings on
the public entity’s compliance with specific
matters in key legislation. I performed
procedures to identify findings but not to
gather evidence to express assurance.
21. The material findings on compliance with
specific matters in key legislation are as
follows:
Annual financial statements
22. The financial statements submitted for
auditing were not in accordance with the
prescribed financial reporting framework as
required by section 55(1 )(a) and (b) of the
PFMA.
23. Material misstatements of receivables
from exchange transactions, receivables
from non-exchange transactions, revenue,
administration expenses, commitments,
contingent assets and prior period errors
identified by the auditors in the submitted
financial statement were corrected and
the supporting records were provided
subsequently, resulting in the financial
statements receiving an unqualified audit
opinion.
Expenditure management
24. Effective and appropriate steps were not
taken to prevent irregular expenditure
amounting to R12 976 000 as disclosed in
note 28 to the annual financial statements, as
required by section 51(1) (b) (ii) of the PFMA.
The majority of the irregular expenditure was
caused by non-compliance with the supply
chain regulations.
Procurement and contract management
25. Some of the quotations were accepted
from prospective suppliers who did not
submit a declaration on whether they are
employed by the state or connected to any
person employed by the state, as required by
Treasury Regulation 16A8.4 and paragraph
4.1.2 of Practice Note 7 of 2009/2010.
26. In some instances the prices of Personal
Protective Equipment items charged by
suppliers were not in accordance with
Annexure A of the National Treasury
Instruction note 8 of 2020/21 as required by
paragraph 3.1.1 of the same instruction note.
Other information
27. The accounting authority is responsible for
the other information. The other information
comprises the information included in the
annual report. The other information does not
include the financial statements, the auditor’s
report and those selected programme
presented in the annual performance report
that have been specifically reported in this
auditor’s report.
28. My opinion on the financial statements
and findings on the reported performance
information and compliance with legislation
do not cover the other information and I do
not express an audit opinion or any form of
assurance conclusion on it.
29. In connection with my audit, my responsibility
is to read the other information and, in doing
so, consider whether the other information
is materially inconsistent with the financial
statements and the selected programme
presented in the annual performance report,
or my knowledge obtained in the audit, or
otherwise appears to be materially misstated.
30. I did not receive the other information prior
to the date of this auditor’s report. When I do
receive and read this information, if I conclude
that there is a material misstatement therein,
I am required to communicate the matter to
those charged with governance and request
that the other information be corrected. If
the other information is not corrected, I may
have to retract this auditor’s report and re-
issue an amended report as appropriate.
However, if it is corrected this will not be
necessary.
Internal control deficiencies
31. I considered internal controls relevant to my
audit of the financial statements, reported
performance information and compliance
with applicable legislation; however, my
objective was not to express any form of
assurance on it. The matters reported below
are limited to the significant internal control
deficiencies that resulted in the findings on
compliance with legislation included in this
report.
32. Actions plans implemented by the public
entity did not adequately address root causes
of previously reported audit findings as repeat
findings were identified.
33. The public entity did not implement sufficient
monitoring controls to ensure accurate
and complete financial and performance
reports were kept which resulted in material
adjustments of the financial statements,
performance report and non-compliance
with laws and regulations.
Pretoria
31 July 2021
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ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
Annexure:Auditor-General’s responsibility for the audit
1. As part of an audit in accordance with the
ISAs, I exercise professional judgement and
maintain professional scepticism throughout
my audit of the financial statements and
the procedures performed on reported
performance information for selected
programme and on the public entity’s
compliance with respect to the selected
subject matters.
Financial statements
2. In addition to my responsibility for the audit
of the financial statements as described in
this auditor’s report, I also:
• identify and assess the risks of material
misstatement of the financial statements,
whether due to fraud or error; design and
perform audit procedures responsive to
those risks; and obtain audit evidence
that is sufficient and appropriate to
provide a basis for my opinion. The risk
of not detecting a material misstatement
resulting from fraud is higher than for one
resulting from error, as fraud may involve
collusion, forgery, intentional omissions,
misrepresentations or the override of
internal control
• obtain an understanding of internal
control relevant to the audit in order
to design audit procedures that are
appropriate in the circumstances, but not
for the purpose of expressing an opinion
on the effectiveness of the public entity’s
internal control
• evaluate the appropriateness of
accounting policies used and the
reasonableness of accounting estimates
and related disclosures made by the
accounting authority
• conclude on the appropriateness of the
accounting authority’s use of the going
concern basis of accounting in the
preparation of the financial statements.
I also conclude, based on the audit
evidence obtained, whether a material
uncertainty exists relating to events or
conditions that may cast significant doubt
on the ability of the EWSETA to continue
as a going concern. If I conclude that a
material uncertainty exists, I am required
to draw attention in my auditor’s report
to the related disclosures in the financial
statements about the material uncertainty
or, if such disclosures are inadequate,
to modify my opinion on the financial
statements. My conclusions are based
on the information available to me at the
date of this auditor’s report. However,
future events or conditions may cause
a public entity to cease operating as a
going concern
• evaluate the overall presentation,
structure and content of the financial
statements, including the disclosures,
and determine whether the financial
statements represent the underlying
transactions and events in a manner that
achieves fair presentation.
Communication with those charged with governance
3. I communicate with the accounting authority
regarding, among other matters, the planned
scope and timing of the audit and significant
audit findings, including any significant
deficiencies in internal control that I identify
during my audit.
4. I also provide the accounting authority
with a statement that I have complied with
relevant ethical requirements regarding
independence, and to communicate with
them all relationships and other matters that
may reasonably be thought to bear on my
independence and, where applicable, actions
taken to eliminate threats or safeguards
applied.
The members are required by the Public Finance
Management Act (Act 1 of 1999), to maintain
adequate accounting records and are responsible
for the content and integrity of the annual financial
statements and related financial information
included in this report. It is the responsibility of
the members to ensure that the annual financial
statements fairly present the state of affairs of the
entity as at the end of the financial period and the
results of its operations and cash flows for the period
then ended. The internal auditors are engaged to
perform a review on the annual financial statements
and were given unrestricted access to all financial
records and related data.
The annual financial statements have been
prepared in accordance with Standards of Generally
Recognised Accounting Practice (GRAP) including
any interpretations, guidelines and directives issued
by the Accounting Standards Board.
The annual financial statements are based upon
appropriate accounting policies consistently
applied and supported by reasonable and prudent
judgements and estimates.
The members acknowledge that they are ultimately
responsible for the system of internal financial
control established by the entity and place
considerable importance on maintaining a strong
control environment.
To enable the members to meet these
responsibilities, the Accounting Authority sets
standards for internal control aimed at reducing the
risk of error or deficit in a cost effective manner.
The standards include the proper delegation of
responsibilities within a clearly defined framework,
effective accounting procedures and adequate
segregation of duties to ensure an acceptable level
of risk. These controls are monitored throughout
the entity and all employees are required to
maintain the highest ethical standards in ensuring
the entity’s business is conducted in a manner that
in all reasonable circumstances is above reproach.
The focus of risk management in the entity is on
identifying, assessing, managing and monitoring
all known forms of risk across the entity. While
operating risk cannot be fully eliminated, the
entity endeavours to minimise it by ensuring that
appropriate infrastructure, controls, systems and
ethical behaviour are applied and managed within
predetermined procedures and constraints.
The members are of the opinion, based on
the information and explanations given by
management, that the system of internal control
provides reasonable assurance that the financial
records may be relied on for the preparation of
the annual financial statements. However, any
system of internal financial control can provide only
reasonable, and not absolute, assurance against
material misstatement or deficit.
The members have reviewed the entity’s budget
for the year to 31 March 2022 and, in the light of
this review and the current financial position, they
are satisfied that the entity has or has access to
adequate resources to continue in operational
existence for the foreseeable future.
The annual financial statements set out on page
82 to 131, which have been prepared on the going
concern basis, were approved by the Accounting
Authority on 28 May 2021 and were signed on its
behalf by:
Dr. Limakatso Moorosi
Chairperson of the Accounting Authority
ACCOUNTING AUTHORITY’S RESPONSIBILITIES AND APPROVAL
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ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2021
2021 2020 Restated
Note(s) R’000 R’000
Assets
Current Assets
Receivables from exchange transactions 2 4 270 39 562
Receivables from non-exchange transactions 3 9 366 81 603
Prepayments 4 720 6 075
Cash and cash equivalents 5 369 409 364 612
383 765 491 852
Non-Current Assets
Property, plant and equipment 6 24 795 61 564
Intangible assets 7 479 571
25 274 62 135
Total Assets 409 039 553 987
Liabilities
Current Liabilities
Payables from exchange transactions 8 5 258 5 697
Payables from non-exchange transactions 9 99 697 68 437
Unspent conditional grants and receipts 10 19 128 19 869
Provisions 11 139 262 179 447
263 345 273 450
Total Liabilities 263 345 273 450
Net Assets 145 694 280 537
Reserves
Administration reserve 25 274 62 135
Mandatory grant reserve 40 233
Discretionary grant reserve 120 380 218 169
Total Net Assets 145 694 280 537
STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2021
2021 2020 RestatedNote(s) R’000 R’000
Revenue
Non-exchange revenue 12 215 828 317 888Exchange revenue 13 106 143Investment revenue 14 9 363 20 442Total revenue 225 297 338 473Expenditure
Mandatory grant and project expenses 15 (219 842) (273 893)Administration expenses 16 (29 756) (47 923)Employee related costs 17 (25 632) (22 574)Depreciation and amortisation (876) (822)Impairment Loss (83 964) -Repairs and Maintenance (21) (114)Loss on disposal of assets (42) (107)Total expenditure (360 133) (345 433)Deficit for the year (134 836) (6 960)
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ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2021
2021 2020 RestatedNote(s) R’000 R’000
Cash flows from operating activitiesReceiptsCash receipts from stakeholders and customers 275 964 503 849Interest income 9 363 20 442
285 327 524 291PaymentsEmployee related costs (25 632) (22 574)Mandatory grant, administrative and project expenses (254 378) (644 746)
(280 010) (667 320)Net cash flows from operating activities 19 5 317 (143 029)Cash flows from investing activities Purchase of property, plant and equipment 6 (520) (802)Purchase of other intangible assets 7 - (173)Net cash flows from investing activities (520) (975)Net increase/(decrease) in cash and cash equivalents 4 797 (144 004)Cash and cash equivalents at the beginning of the year 364 612 508 616Cash and cash equivalents at the end of the year 5 369 409 364 612
STATEMENT OF CHANGES IN NET ASSETS AS AT 31 MARCH 2021
Administration reserve
Mandatory grant reserve
Discretionary grant reserve
Total reserves Accumulated surplus
Total net assets
R'000 R'000 R'000 R'000 R'000 R'000
Opening balance as previously reported 62 008 100 195 246 257 354 - 257 354
Adjustments
Prior year adjustments (18) - 30 157 30 139 - 30 139
Balance at 01 April 2019 as restated* 61 990 100 225 403 287 493 - 287 493
Changes in net assets
Allocation of surplus (deficit) to reserves (29 692) 9 893 12 839 (6 960) 6 960 -
Excess funds transferred to/from discretionary reserve 29 837 (9 760) (20 077) - - -
Net income (losses) recognised directly in net assets 145 133 (7 238) (6 960) 6 960 -
Surplus for the year - - - - (6 960) (6 960)
Total changes 145 133 (7 238) (6 960) - (6 960)
Balance at 01 April 2020 62 135 233 218 169 280 537 - 280 537
Changes in net assets
Allocation of surplus (deficit) to reserves (112 942) 2 188 (24 082) (134 836) 134 836 -
Excess funds transferred to/from discretionary reserve 76 081 (2 381) (73 700) - - -
Net income (losses) recognised directly in net assets (36 861) (193) (97 782) (134 836) 134 836 -
Surplus for the year - - - - (134 836) (134 836)
Total changes (36 861) (193) (97 782) (134 836) - (134 836)
Balance at 31 March 2021 25 274 40 120 382 145 696 - 145 696
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ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS
Budget on Cash Basis
Approved budget Adjustments Final Budget
Actual amounts on comparable
basis
Difference between final
budget and actual Reference
R’000 R’000 R’000 R’000 R’000
Statement of Financial Performance
Revenue
Revenue from exchange transactionsOther income
- - - 106 106
Investment income 22 900 (7 634) 15 266 9 363 (5 903) a
Total revenue from exchange transactions 22 900 (7 634) 15 266 9 469 (5 797)
Revenue from non-exchange transactions
Transfer revenue
Special project income - - - 5 151 5 151 b
Skills development levy income 370 173 (123 391) 246 782 209 213 (37 569) c
Interest and penalties income - - - 1 464 1 464 d
Total revenue from non- exchange transactions 370 173 (123 391) 246 782 215 828 (30 954)
Total revenue 393 073 (131 025) 262 048 225 297 (36 751)
Expenditure
Employee-related costs (38 974) 2 818 (36 156) (25 632) 10 524 e
Depreciation and amortisation - - - (876) (876) f1
Impairment loss/ Reversal of impairments - - - (83 964) (83 964) f2
Rental for the premises - (3 000) (3 000) (3 613) (613) g
Repair and Maintenance - - - (21) (21)
Administrative Expenses (54 405) 10 782 (43 623) (26 143) 17 480 h
Budget on Cash Basis
Approved budget Adjustments Final Budget
Actual amounts on comparable
basis
Difference between final
budget and actual Reference
R’000 R’000 R’000 R’000 R’000
Mandatory Grant expenses (77 808) 25 936 (51 872) (46 854) 5 018 i
Discretionary Grant expenses (221 727) 73 909 (147 818) (169 382) (21 564) j
Special project expenses - - - (3 606) (3 606) k
Total expenditure (392 914) 110 445 (282 469) (360 091) (77 622)
Operating deficit 159 (20 580) (20 421) (134 794) (114 373)
Loss on disposal of assets - - - (42) (42)
Deficit for the year 159 (20 580) (20 421) (134 836) (114 415)
Actual Amount on Comparable Basis as Presented in the Budget and Actual Comparative Statement 159 (20 580) (20 421) (134 836) (114 415)
Capital Expenditure
Non-Current Assets
Property, plant and equipment
1 000 (1 000) - 520 520 I
Intangible assets 600 - 600 - (600) l
1 600 (1 000) 600 520 (80)
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ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
ACCOUNTING POLICIES1. PRESENTATION OF ANNUAL FINANCIAL
STATEMENTS
The annual financial statements have been prepared
in accordance with the Standards of Generally
Recognised Accounting Practice (GRAP), issued by
the Accounting Standards Board in accordance with
Section 91(1) of the Public Finance Management
Act (Act 1 of 1999).
These annual financial statements have been
prepared on an accrual basis of accounting and are
in accordance with historical cost convention as the
basis of measurement, unless specified otherwise.
They are presented in South African Rand and have
been rounded to the closest R1,000, except where
indicated otherwise. Assets, liabilities, revenues and
expenses were not offset, except where offsetting is
either required or permitted by a Standard of GRAP.
A summary of the significant accounting policies,
which have been consistently applied in the
preparation of these annual financial statements,
are disclosed below. These accounting policies are
consistent with the previous period.
1.1 SIGNIFICANT JUDGEMENTS AND SOURCES OF ESTIMATION UNCERTAINTY
In preparing the annual financial statements,
management is required to make judgements,
estimates and assumptions that affect the amounts
represented in the annual financial statements and
related disclosures. Use of available information
and the application of judgement is inherent in
the formation of estimates. Actual results in the
future could differ from these estimates which
may be material to the annual financial statements.
Significant judgements and sources of estimation
uncertainty include:
Useful lives and residual values of property, plant
and equipment and intangible assets
All classes of property, plant and equipment are
depreciated on a straight-line basis over the asset’s
expected useful life to their estimated residual value.
The EWSETA reviews the estimated useful lives and
residual values of property, plant and equipment at
the end of each annual reporting period if there is
an indication that the useful lives or residual values
may have changed. Refer to note 6 for the carrying
values of property, plant and equipment.
EWSETA’s mandate is dependant on the renewal
of their operating licence which expires in 2030.
Management has a reasonable expectation that the
licence will be renewed indefinitely and therefore
useful lives are not limited to the term of the licence.
Provision for performance bonus
The entity pays performance bonuses in accordance
with the approved remuneration policy. The
performance bonus provision is based on individual
provisional performance scores that are finalised
after preparation of the financial statements.
EWSETA therefore estimates the performace bonus
based on the range of potential bonus payouts.
The final bonus amounts are determined after
finalisation of performance scores.
Provision for discretionary grants
The provision for discretionary grants relates to
bursary programmes and outstanding discretionary
grants invoices payable. A provision is raised for
claimed discretionary grants where supporting
evidence has not been received yet at year end.
The provision is estimated based on the amount
being claimed by the recipient of the discretionary
grant. Once EWSETA has verified the evidence
supporting the discretionary grant or bursary claim,
the amount paid may differ from the provision
recognised in the financial statements.
Impairment of Exchange/Non-exchange
Receivables
The entity assesses its receivables for impairment
at the end of each reporting period. In determining
whether a receivable is impaired, the entity makes
judgements as to whether there is observable data
indicating a measurable decrease in the estimated
future cash flows from the receivable.
An impairment loss is recognised when there
is objective evidence that it is impaired. The
impairment is measured as the difference between
the receivable’s carrying amount and the present
value of estimated future cash flows discounted
at the effective interest rate computed at initial
recognition.
Impairment of property, plant and equipment
EWSETA assesses its property, plant and equipment
for impairment if there is an indication at year-end,
that it may be impaired. If so, EWSETA impairs the
carrying value of the asset to its recoverable service
amount. The estimation of the recoverable service
amount is subject to several sources of estimation
uncertainty.
During the current year, EWSETA recognised an
impairment loss on a building. A description of the
estimations made in determining the recoverable
service amount of the building are disclosed in
the property, plant and equipment note. Given
the current COVID-19 pandemic, the estimation
of property values is particularly sensitive as the
pandemic has had a significant impact on the
property market.
Classification of Cape House building as property,
plant and equipment
The entity owns a building that is registered with the
Heritage Council and enjoys protection from certain
features that have historical importance. EWSETA
has applied its judgement in determinig whether
a significant portion of the building meets the
definition of a heritage asset. Based on the outcome
of the judgement applied, EWSETA has classified
the building as property, plant and equipment,
primarily because the heritage protection applies to
an insignificant portion of the building.
Classification of Cape House building as a non-
current asset
As described in the property, plant and equipment
note, EWSETA has during the current financial year,
decided to dispose of its building. The sale of the
building is subject to executive authority approval
in accordance with the requirements of the PFMA.
EWSETA has limited control over the approval
process but knows that this approval process might
not be completed within 12 months of the reporting
date.
Furthermore, the costs for refurbishing the building
is the subject of ongoing litigation of which further
details are disclosed in the contingencies note,
and this may impact management’s decision on
when to sell the building. For these reasons, we are
continued to present the building as a non-current
asset.
Mandatory grants payout rate
Mandatory grant expenditure and the mandatory
grant liability were calculated using a 20% mandatory
grant percentage; however, this percentage is
subject to legal matter which is pending. Further
disclosure of the background and nature of the
legal matter is provided in the contingencies note.
1.2 PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are tangible non-
current assets that are held for use in the production
of services, or for administrative purposes, and are
expected to be used during more than one period.
The entity has designed all of its assets as non cash-
generating, as all assets are used to deliver services
and not generate a commercial return.
The cost of an item of property, plant and equipment
is recognised as an asset when:
• it is probable that future economic benefits or
service potential associated with the item will
flow to the entity; and
• the cost of the item can be measured reliably.
Typically this is when assets are delivered to EWSETA.
WProperty, plant and equipment is initially measured
at cost. The cost of an item of property, plant and
equipment is the purchase price and other costs
attributable to bring the asset to the location and
condition necessary for it to be capable of operating
in the manner intended by management. Discounts
are deducted in arriving at the cost, and the cost of
value-added tax is included as EWSETA is not able to
claim this back from the revenue authority. EWSETA
does not have any assets acquired through a non-
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ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
exchange transaction, or through an exchange of
non-monetary assets.
After initial recognition, property, plant and
equipment is accounted for on the cost model and
carried at cost less accumulated depreciation and
impairment losses (if applicable). Impairments are
accounted for in terms of the accounting policy for
impairment of non cash-generating assets. Assets
are not depreciated until they are in the location
and condition to be capable of operating in the
manner intended by management i.e. available
for use. Assets are depreciated on a straight-line
basis over their useful lives to their residual values.
EWSETA considers the straight-line basis to reliably
reflect the pattern by which assets’ service potential
are consumed.
The useful lives of items of property, plant and equipment have been assessed as follows:
Item Depreciation method Average useful lifeBuildings Straight-line 20 to 30 yearsFurniture and fixtures Straight-line 5 to 15 yearsMotor vehicles Straight-line 5 to 8 years Office equipment Straight-line 5 to 15 yearsIT equipment Straight-line 3 to 8 yearsLeasehold improvements Straight-line Shorter of lease period and useful life of asset
Depreciation method
Straight-line
EWSETA does not have any assets with parts that are
depreciated separately; all items of property, plant
and equipment are depreciated as a whole asset.
Annually, EWSETA reviews:
• The depreciation method applied to each
asset and whether it is appropriate;
• The useful life of each asset and whether it still
reflects the period over which service potential
will be derived from the asset;
• The residual value and whether it still reflects
the amount expected to be recovered from
disposal of the asset at the end of its useful life.
If any of these assumptions and estimates has
changed, EWSETA revises the depreciation
method, expected useful life and/or residual
value accordingly. The change is accounted for
in accordance with GRAP 3 Accounting Policies,
Changes in Accounting Estimates and Errors.
Items of property, plant and equipment are
derecognised when there is no further economic
benefit or service potential expected from the
use of the asset. The gain or loss arising from the
derecognition of an item of property, plant and
equipment is included in surplus or deficit when the
item is derecognised.
1.3 INTANGIBLE ASSETS
Intangible assets are identifiable non-monetary
assets without physical substance. EWSETA
intangible assets comprises only software.
The cost of an intangible asset is recognised as an
asset when:
• it is probable that service potential associated
with the item will flow to the entity; and
• the cost of the item can be measured reliably.
Typically this is when the software is received by
EWSETA.
Intangible assets are initially measured at cost. The
cost of an intangible asset is the purchase price
and directly attributable costs of preparing the
asset for its intended use. Discounts are deducted
in arriving at the cost, and the cost of value-added
tax is included as EWSETA is not able to claim this
back from the revenue authority. Where applicable,
professional fees arising directly from bringing
the asset to its working condition (e.g. installation,
configuration and testing costs) are also included in
the cost. EWSETA does not have any intangible assets
acquired through a non-exchange transaction, or
through an exchange of non-monetary assets.
After initial recognition, intangible assets are
accounted for on the cost model and carried at
cost less accumulated amortisation and impairment
losses (if applicable). Impairments are accounted for
in terms of the accounting policy for impairment of
non cash-generating assets. Intangible assets are
not amortised until they are capable of operating in
the manner intended by management i.e. available
for use. Assets are amortised on a straight-line basis
over their useful lives. All EWSETA intangible assets
have a residual value of zero. EWSETA considers the
straight-line basis to reliably reflect the pattern by
which assets’ service potential are consumed.
The useful lives of intangible assets has been
assessed as follows:
ItemDepreciation
methodAverage
useful lifeComputer software
and Licenses
Straight-line 3 to 10
years
Annually, EWSETA reviews:
• The amortisation method applied to each
intangible asset and whether it is appropriate;
• The useful life of each intangible asset and
whether it still reflects the period over which
service potential will be derived from the asset
(all of EWSETA’s intangible assets have finite
useful lives).
If any of these assumptions and estimates has
changed, EWSETA revises the amortisation method
and/or expected useful life accordingly. The
change is accounted for in accordance with GRAP
3 Accounting Policies, Changes in Accounting
Estimates and Errors.
Intangible assets are derecognised when there
is no further service potential expected from the
use of the asset. The gain or loss arising from the
derecognition is included in surplus or deficit when
the item is derecognised.
1.4 IMPAIRMENT OF NON-CASH-GENERATING ASSETS
EWSETA assesses, at each reporting date, whether
there is an indication that an asset may be impaired.
If any indication exists, EWSETA estimates the
asset’s recoverable amount. An asset’s recoverable
amount is the higher of the asset’s fair value less
costs of disposal and its value in use.The recoverable
amount is determined for an individual asset, unless
the asset does not generate cash inflows that are
largely independent of those from other assets or
groups of assets.
When the carrying amount of an asset exceeds
its recoverable amount, the asset is considered
impaired and is written down to its recoverable
amount. The resulting impairment loss is included
in the Statement of Financial Performance.
1.5 GRANTS AND PROJECT EXPENDITURE
Mandatory grant expenditure
Mandatory grants are paid to sector employers in
terms of SETA Grant Regulation 4. Mandatory grant
expenditure and the related payable is recognised
when the employer has submitted an application
for a grant in the prescribed form, within the
agreed upon cut-off period, the application has
been approved and the levy has been paid by the
employer.
The mandatory grant equivalent to 20% (2020:20%)
of the total levies paid by the employer. The
payment of 20% is subject to judgement and is also
a contingency. In this respect, additional disclosures
are presented in the note for significant judgements
and the contingencies note respectively.
The SETA refunds amounts to the employers in the
form of grants based on information from SARS.
Where SARS retrospectively amends the information
on levies collected, it may result in grants that have
been paid to certain employers being in excess of the
amounts the SETA is permitted to have granted the
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ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
employers. A receivable relating to the overpayments
to the employer in earlier periods is raised as the
amount of such grant overpayment, net of bad debts
and provision for irrecoverable amounts.
Discretionary grants and project expenditure
Discretionary grant expenditure comprises two
major components:
• Dicretionary grants paid to education and
training institutions, employers and other
enterprises, organisations and associations in
order to implement the EWSETA Sector Skills
Plan. These parties are required to submit
applcations for discretionary grant in the
prescribed form within the agreed upon cut-
off period. These expenses and the related
payable are recognised when the application
has been approved, training has taken place
and conditions for payment have been met.
• Administration or project management costs
relating to discretionary grant projects. EWSETA
classifies these costs as project administration
expenses and presents them accordingly in
the mandatory grants and project expenses
note. These expenses and the related payable
are recognised when they are incurred.
Discretionary grant expenditure is measured at the
amounts that have been incurred per the contract
signed between EWSETA and the applicable
counterparty.
Administration expenditure
The Skills Development Levies Act stipulates that
a maximum of 10% of the SETA levy income may
be used for the SETA’s operational administration
expenses. An additional maximum of 0,5% of the
SETA levy income is contributed by the SETA to
the QCTO to fund the QCTO’s activities. Where
EWSETA anticipates that it may be unable to limit
administration expenses to the threshold set out
above, an application in the prescribed form is made
to the executive authority to exceed this threshold.
Administration expenditure is recognised when
the expenditure is incurred. The expenditure is
measured at the amounts that have been incurred
per the contract signed between EWSETA and the
applicable counterparty.
1.6 CONDITIONAL GRANTS AND RECEIPTS
Revenue received from conditional grants,
donations and funding are recognised as revenue
to the extent that the EWSETA has complied with
any of the conditions embodied in the agreement.
To the extent that the conditions have not been
met, a liability is recognised.
1.7 BUDGET INFORMATION
EWSETA prepares its budget in accordance with
the budgetary limitations prescribed by legislation.
Where these limitations cannot be adhered to,
approval is sought in advance from the executive
authority in the prescribed form.
The budget was prepared on the cash basis modified
for certain accruals and presented by econimic
classification. Non-cash items (depreciation and
armotisation, and losses on derecognition of
assets) are excluded from the budget. The budget
covers the fiscal period from 2020/04/01 to
2021/03/31 and includes only EWSETA and no other
entities. Explanations are provided for all material
budget variances, being variances above 10% and
R300 000.00
1.8 RELATED PARTIES
Related party transactions are defined as the
transfer of resources, services or obligations,
regardless of whether a price is charged. EWSETA
discloses transactions and balances with all entities
also under the control of its controlling entity,
DHET. EWSETA further discloses transactions and
balances with all entities that have members on the
EWSETA Accounting Authority.
Management are those persons responsible for
planning, directing and controlling the activities of
the entity, including those charged with governance.
EWSETA discloses the amount of remuneration per
person for the following classes of management:
• Executive managers
• Members of the Accounting Authority and its
committees.
1.9 EVENTS AFTER REPORTING DATE
Events after reporting date are those events, both
favourable and unfavourable, that occur between
the reporting date and the date when the financial
statements are authorised for issue. Two types of
events can be identified:
• those that provide evidence of conditions that
existed at the reporting date (adjusting events
after the reporting date); and
• those that are indicative of conditions that
arose after the reporting date (non-adjusting
events after the reporting date).
The entity has adjusted the amount recognised in
the financial statements to reflect adjusting events
after the reporting date once the event occurred.
The entity will disclose the nature of the event and
an estimate of its financial effect or a statement
that such estimate cannot be made in respect of all
material non-adjusting events, where non-disclosure
could influence the economic decisions of users
taken on the basis of the financial statements.
1.10 RESERVES
Net assets are sub-classified in the statement of
financial position between the following funds and
reserves:
• Administration reserve
• Mandatory grant reserve
• Discretionary grant reserve
This sub-classification is made based on the
restrictions placed on the distribution of monies
received in accordance with the regulations issued
in terms of the Skills Development Act, 1998 (Act
No. 97 of 1998).
Interest and penalties received from SARS and
interest received on investments are utilised for
discretionary grants and projects. Other income
received is utilised in accordance with the original
source of the income.
The minimum amount retained in the administration
reserve equates to the net book value of non-
current assets.
Surplus funds in the mandatory grant reserve are
transferred to the discretionary grant reserve at the
end of the financial year. An amount is retained in
the mandatory grant reserve,after consideration is
given to new companies. Mandatory grant reserve
is the mandatory grant payable to all new employers
who in terms of the regulation still have six months
after joining to submit their workplace skills plan.
1.11 FINANCIAL INSTRUMENTS
A financial instrument is any contract that gives
rise to a financial asset of one entity and a financial
liability or a residual interest of another entity.
The amortised cost of a financial asset or financial
liability is the amount at which the financial asset
or financial liability is measured at initial recognition
minus principal repayments, plus or minus the
cumulative amortisation using the effective interest
method of any difference between that initial
amount and the maturity amount, and minus any
reduction (directly or through the use of an allowance
account) for impairment or uncollectibility.
Derecognition is the removal of a previously
recognised financial asset or financial liability from
an entity’s statement of financial position.
A financial asset is:
• cash;
• a residual interest of another entity; or
a contractual right to:
- receive cash or another financial asset from
another entity; or
- exchange financial assets or financial liabilities
with another entity under conditions that are
potentially favourable to the entity.
A financial liability is any liability that is a contractual
obligation to:
• deliver cash or another financial asset to
another entity; or
• exchange financial assets or financial
liabilities under conditions that are potentially
unfavourable to the entity.
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ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
Initial recognition
The entity recognises a financial asset or a financial
liability in its statement of financial position when
the entity becomes a party to the contractual
provisions of the instrument.
Financial assets
All financial assets of the entity are categorised as
loans and receivables. The classification depends
on the nature and purpose of the financial assets
and is determined at the time of initial recognition.
Cash and cash equivalents
Cash and cash equivalents comprise balances
held at banks and short term investments and are
at amortised cost, which,due to their short-term
nature, closely approximates their fair value.
Financial assets at amortised cost
EWSETA classifies receivables from exchange and
non-exchange transactions as financial assets
at amortised cost and measures these using the
effective interest method. These financial assets are
not quoted in an active market and have fixed or
determinable payments as defined in GRAP.
Impairment of financial assets
Financial assets are assessed for impairment at each
year-end. Financial assets are impaired where there
is objective evidence that, as a result of one or more
events that occurred after the initial recognition of
the financial asset, the estimated future cash flow
of the investment has been impacted. For financial
assets carried at amortised cost, the amount of the
impairment is the difference between the asset’s
carrying amount and the present value of estimated
future cash flows, discounted at the original effective
interest rate.
The carrying amount of the financial asset is
reduced by the impairment loss recognised during
the financial period. The financial assets’ carrying
amount is reduced through the use of an allowance
account/ provision for doubtful debt account.
When a receivable is uncollectable, it is written
off against the allowance account/ provision for
doubtful debt. Subsequent recoveries of amounts
previously written off are recognised in surplus or
deficit for the year.
In assessing whether the entity’s financial asset
or group of financial assets is impaired at end of
reporting period, EWSETA consider the following
among others:
• significant financial difficulty of the issuer or
obligor;
• a breach of contract, such as a default or
delinquency in interest or principal payments;
• the lender, for economic or legal reasons
relating to the borrower’s financial difficulty,
granting to the borrower a concession that the
lender would not otherwise consider;
• it is probable that the borrower will enter
sequestration or other financial reorganisation;
• observable data indicating that there is a
measurable decrease in the estimated future
cash flows from a group of financial assets since
the initial recognition of those assets, although
the decrease cannot yet be identified with the
individual financial assets in the group, including:
i. adverse changes in the payment status of
borrowers in the group (e.g. an increased
number of delayed payments); or
ii. national or local economic conditions that
correlate with defaults on the assets in the
group (e.g. an increase in theunemployment
rate in the geographical area of the borrowers,
or adverse changes in market conditions that
affect the borrowers in the group); and
• Other circumstances and considerations
which in management’s view will have a
negative impact on the recoverability of the
financial asset or group of financial assets (for
example the passing of prescription period as
determined in the Prescription Act).
Financial liabilities
All financial liabilities of the entity are classified
as financial liabilities at amortised cost. The
classification depends on the nature and purpose
of the financial liabilities and is determined at the
time of initial recognition.
Effective interest method
The effective Interest method is a method of
calculating the amortised cost of a financial asset
and of allocating interest income over the relevant
period. The effective interest rate is the rate that
exactly discounts estimated future cash receipts
through the expected life of the financial asset, or,
where appropriate, a shorter period.
1.12 LEASES
A lease is classified as a finance lease if it transfers
substantially all the risks and rewards incidental to
ownership. A lease is classified as an operating lease
if it does not transfer substantially all the risks and
rewards incidental to ownership.
Operating leases - lessee
Operating lease payments are recognised as an
expense on a straight-line basis over the lease term.
The difference between the amounts recognised
as an expense and the contractual payments are
recognised as an operating lease asset or liability.
1.13 EMPLOYEE BENEFITS
Employee benefits are all forms of consideration
given by the entity in exchange for service rendered
by employees.
Short-term employee benefits
Short-term employee benefits are employee
benefits (other than termination benefits) that are
due to be settled within twelve months after the
end of the period in which the employees render
the related service.
Short-term employee benefits include items such as:
• wages, salaries, medical aid and pension
contributions;
• short-term compensated absences (such as
paid annual leave and paid sick leave) where
the compensation for the absences is due to
be settled within twelve months after the end
of the reporting period in which the employees
render the related employee service;
• bonus, incentive and performance related
payments payable within twelve months after
the end of the reporting period in which the
employees render the related service; and
• non-monetary benefits (for example,
subsidised goods or services such as housing,
cars and cellphones) for current employees.
When an employee has rendered service to
the entity during a reporting period, the entity
recognises the undiscounted amount of short-term
employee benefits expected to be paid in exchange
for that service:
• as a liability (accrued expense), after deducting
any amount already paid. If the amount already
paid exceeds the undiscounted amount of the
benefits, the entity recognises that excess as an
asset (prepaid expense) to the extent that the
prepayment will lead to, for example, a reduction
in future payments or a cash refund; and
• as an expense, unless another Standard
requires or permits the inclusion of the benefits
in the cost of an asset.
The expected cost of compensated absences is
recognised as an expense as the employees render
services that increase their entitlement or, in the
case of non-accumulating absences, when the
absence occurs. The entity measures the expected
cost of accumulating compensated absences as
the additional amount that the entity expects to
pay as a result of the unused entitlement that has
accumulated at the reporting date.
The entity recognises the expected cost of bonus,
incentive and performance related payments
when the entity has a present legal or constructive
obligation to make such payments as a result of past
events and a reliable estimate of the obligation can
be made. A present obligation exists when the entity
has no realistic alternative but to make the payments.
1.14 PROVISIONS AND CONTINGENCIES
Provisions are recognised when:
• the entity has a present obligation as a result of
a past event;
• it is probable that an outflow of resources
embodying economic benefits or service
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ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
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ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
potential will be required to settle the
obligation; and
• a reliable estimate can be made of the
obligation.
The amount of a provision is the best estimate of
the expenditure expected to be required to settle
the present obligation at the reporting date.
Where the effect of time value of money is material,
the amount of a provision is the present value of the
expenditures expected to be required to settle the
obligation.
None of the entity’s provisions are expected to be
partially or fully reimbursed by another entity.
Provisions are reviewed at each reporting date
and adjusted to reflect the current best estimate.
Provisions are reversed if it is no longer probable
that an outflow of resources embodying economic
benefits or service potential will be required, to
settle the obligation.
Where discounting is used, the carrying amount of
a provision increases in each period to reflect the
passage of time. This increase is recognised as an
interest expense.
A provision is used only for expenditures for which
the provision was originally recognised.
Provisions are not recognised for future operating
surplus (deficit).
If the entity has a contract that is onerous, the
present obligation (net of recoveries) under the
contract is recognised and measured as a provision.
Contingencies
A contingent liability is:
(a) a possible obligation that arises from past
events, and whose existence will be confirmed
only by the occurrence or nonoccurrence
of one or more uncertain future events not
wholly within the control of the entity; or
(b) a present obligation that arises from past
events but is not recognised because:
(i) it is not probable that an outflow of
resources embodying economic benefits
or service potential will be required to
settle theobligation; or
(ii) the amount of the obligation cannot be
measured with sufficient reliability.
A contingent asset is a possible asset that arises from
past events, and whose existence will be confirmed
only by the occurrence or non-occurrence of one
or more uncertain future events not wholly within
the control of the entity.
1.15 REVENUE FROM EXCHANGE TRANSACTIONS
Revenue is the gross inflow of economic benefits or
service potential during the reporting period when
those inflows result in an increase in net assets,
other than increases relating to contributions from
owners.
Recognition criteria
When the outcome of a transaction involving an
exchange transaction can be estimated reliably,
revenue associated with the transation is recognised
by reference to the state of completion of the
transaction at the reporting date. The outcome of
of transaction can b estimated reliably when all the
following conditios are satisfied:
(i) it is probable that the economic benefits
or service potential associated with the
transaction will flow to the entity;
(ii) the stage of completion of the transaction at
the reporting date can be measured reliably;
(iii) and the costs incurred for the transaction and
the costs to complete the transaction can be
measured reliably.
1.16 REVENUE FROM NON-EXCHANGE TRANSACTIONS
Levy Income
In terms of section 3(1) and 3(4) of the Skills
Development Levies Act, 1999 (Act No. 9 of 1999),
registered member companies of the Energy and
Water Sector Education and Training Authority
(EWSETA) pay a Skills Development Levy (SDL) of
1% of the total payroll cost to the South African
Revenue Services (SARS). Companies with an annual
payroll cost less than R500 000 are exempted in
accordance with section 4(b) of the SDL Act (1999)
as amended, effective 1 August 2005.
Eighty percent (80%) of skills development levies
are paid over to the EWSETA (net of the 20%
contribution to the National Skills Fund)
The skills development levy received is allocated as
follows:
• 10.5% Administration expenses
• 49.5% Discretionary grant expenses
• 20% Mandatory grant expenses
Skills Development Levy (SDL) transfers are
recognized when it is probable that future economic
benefits will flow to the SETA and these benefits
can be measured reliably. This occurs when the
Department of Higher Education & Training (DHET)
either makes an allocation or payment, whichever
occurs first, to the SETA, as required by Section 8 of
the Skills Development Levies Act, 1999 (Act No.9
of 1999). The SDL transfer is measured at the fair
value of the consideration receivable or received.
A receivable/payable is recognised for levies
receivable as well as estimated SARS adjustments.
An estimate, due to retrospective adjustments by
SARS, is calculated by comparing the amounts paid
by the Employers to SARS and the amounts received
from DHET. Changes to prior year estimates are
accounted for in revenue in the current period.
Levies received from organisations whose payroll is
less than R500,000 per annum are not recognised
as income, as in terms of the Skills Development
Levies Act, these employers should not contribute,
therefore amounts contributed by these employers
are refundable.
The EWSETA refunds amounts to employers in the
form of grants, based on information from SARS.
Where SARS retrospectively amends the information
on levies collected, it may result in grants that have
been paid to certain employers being in excess of the
amount the EWSETA is permitted to have granted to
employers. A receivable relating to the overpayment
to the employer in earlier periods is raised at the
amount of such grant over payment, at the fair value
of the consideration receivable or received.
Revenue is adjusted for inter SETA transfers due to
employers changing SETAs. Such adjustments are
separately disclosed as InterSETA transfers. The
amount of the interest adjustment is calculated
according to the Standard Operating Procedure
issued by DHET.
When a new employer is transferred to the
EWSETA, the levies transferred by the former SETA
are recognised as revenue and allocated to the
respective category to maintain its original identity.
Government levies income is income received
or receivable from the Department of Water and
Sanitation.
Government grants income
Government grants are recognised as revenue
when:
• It is probable that the economic benefits
or service potential associated with the
transaction will flow to the entity, the amountof
the revenue can be measured reliably, and to
the extent that there has been compliance
with any restrictions and conditions associated
with the grant.
• The entity assesses the degree of certainty
attached to the flow of future economic
benefits or service potential on the basisof
the available evidence. Revenue from these
grants is only recognised when it is probable
that the economic benefits or service potential
associated with the transaction will flow to the
entity. An announcement at the beginning of
a financial year that grants may be available
for qualifying entities in accordance with an
agreed programme may not be sufficient
evidence of the probability of the flow.
• A liability is recognised for the portion of
government grants representing restrictions
or conditions that the entity has notfullfilled.
When government remit grants on a re-
imbursement basis, revenue is recognised
when the qualifying expense has been incurred
and to the extent that any other restrictions
have been complied with.
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98 A N N U A L R E P O R T 2 0 2 0 / 2 1 99A N N U A L R E P O R T 2 0 2 0 / 2 1 99A d a p t a b i l i t y t h r o u g h
ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
Interest and Penalties
Interest and penalties on the skills development
levies are charged to the employers for late
submission of their EMP201. This interest and
penalties are recognised by EWSETA when they
accrue/ paid to the entity as per the allocation
provided by DHET.
1.17 INVESTMENT INCOME
Investment income is recognised on a time-
proportion basis using the effective interest method.
1.18 COMPARATIVE FIGURES
Where necessary, comparative figures have been
reclassified to conform to changes in presentation
in the current year.
1.19 FRUITLESS AND WASTEFUL EXPENDITURE
Fruitless and wasteful expenditure means expenditure
which was made in vain and would have been
avoided had reasonable care been exercised.
All expenditure relating to fruitless and wasteful
expenditure is recognised as an expense in the
statement of financial performance in the year that
the expenditure was incurred. The expenditure
is classified in accordance with the nature of the
expense, and where recovered, it is subsequently
accounted for as revenue in the statement of
financial performance.
1.20 IRREGULAR EXPENDITURE
Irregular expenditure as defined in section 1 of
the PFMA is expenditure other than unauthorised
expenditure, incurred in contravention of or that
is not in accordance with a requirement of any
applicable legislation, including:
(a) The PFMA; or
(b) the State Tender Board Act, 1968 (Act No. 86
of 1968), or any regulations made in terms of
the Act;
National Treasury practice note no. 4 of 2008/2009
which was issued in terms of sections 76(1) to 76(4)
of the PFMA requires the following (effective from 1
April 2008):
• Irregular expenditure that was incurred and
identified during the current financial year and
which was condoned before year end and/or
before finalisation of the financial statements
must also be recorded appropriately in the
irregular expenditure register. In such an
instance, no further action is also required
with the exception of updating the note to the
financial statements.
• Irregular expenditure that was incurred and
identified during the current financial year
and for which condonement is being awaited
at year end must be recorded in the irregular
expenditure register.
No further action is required with the exception of
updating the note to the financial statements.
• Where irregular expenditure was incurred in the
previous financial year and is only condoned
in the following financial year, the register and
the disclosure note to the financial statements
must be updated with the amount condoned.
• Irregular expenditure that was incurred and
identified during the current financial year
and which was not condoned by the National
Treasury or the relevant authority must
be recorded appropriately in the irregular
expenditure register. If liability for the irregular
expenditure can be attributed to a person, a
debt account must be created if such a person
is liable in law. Immediate steps must thereafter
be taken to recover the amount from the
person concerned. If recovery is not possible,
the accounting officer or accounting authority
may write off the amount as debt impairment
and disclose such in the relevant note to the
financial statements. The irregular expenditure
register must also be updated accordingly.
If the irregular expenditure has not been
condoned and no person is liable in law, the
expenditure related thereto must remain
against the relevant programme/expenditure
item, be disclosed as such in the note to the
financial statements and updated accordingly
in the irregular expenditure register.
1.21 SEGMENT INFORMATION
Segments are identified by the way in which
information is reported to management, both for
purpose of assessing performance and making
decisions about how future resources will be allocated
to the various activities undertaken by EWSETA.
Segment information is presented based on service
segments. Service segments relate to a distinguishable
component of EWSETA which provides specific
outputs or achieves particular operating objectives
that are in line with the entity’s overall mission.
EWSETA’s segments are administration, mandatory
and discretionary activities. Discretionary activities
comprise those in the ordinary course of business and
those relating to special projects.
1.22 COMMITMENTS
Items are classified as commitments when an
entity has committed itself to future transactions
that will normally result in the outflow of cash.
A commitment is an agreement or a pledge to
assume a financial obligation at a future date. The
EWSETA has two types of commitments:
1. Those for the receipt of goods or services from
suppliers and
2. Lease commitments to render or receive a
service to or from a customer.
A commitment arises out of a contractual
agreement between the entity and another party
which entitles the entity or the third party to enforce
the delivery of the agreed upon goods or services at
an agreed amount. Contractual commitments are
not recognised but are disclosed in the notes to the
financial statements.
The entity measures and discloses the amount of
contractual commitments at the stated contract
amount.
The entity enters into contractual agreements where
the amount of the obligation will be determined at
a future date. The entity measures such contractual
commitments using an estimate based on available
and reliable information at reporting date.
Where there are changes in the estimate determined
by management at a future date, the change is
accounted for in accordance with GRAP 3 Accounting
policies, Accounting estimates and Errors.
1.23 GOING CONCERN ASSUMPTION
As at 31 March 2021, EWSETA has conducted a going
concern ssessment and concluded the following:
• The entity is in a net asset position at year-
end and this is expected to continue fo the
foreseeable future.
• The entity has sufficient cash resources to
honour all commitments and payables that
exist as at the reporting date.
• The entity forecasts that levy income will be sufficient
to cover expenses for the foreseeable future.
• On 22 Juy 2019 the Minister of the Department
of Higher Education and Training re-established
the SETAs wihin a new SETA Landscape from
1 April 2020 to 31 March 2030.
The annual financial statements have thus been
prepared based on the expectation that the entity
will continue to operate as a going concern for
the foreseeable future and there are no significant
circumstances that cast doubt on the goin concern
assumption.
1.24 PREPAYMENTS
Prepayments are payments that the entity has
made at the reporting date for economic benefits
or service potential to be received in future
periods. Prepayments are made in accordance with
contracts between the entity and third parties.
The entity recognises as an asset the extent to which
payments made exceed the value of economic
benefits or service potential received. The entity
measures prepayments at the fair value of the
consideration paid, to the extent that it exceeds
the value of goods or services received. As the
entity receives the related goods or services, it shall
reduce the carrying amount of prepayments made
by the fair value of those goods or services received.
Any related asset or expense will be recognised in
accordance with the applicable GRAP standard .
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100 A N N U A L R E P O R T 2 0 2 0 / 2 1 101A N N U A L R E P O R T 2 0 2 0 / 2 1 101A d a p t a b i l i t y t h r o u g h
ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
1.25 STANDARDS ISSUED BUT NOT YET EFFECTIVE
At the end of authorisation of these financial
statements, the following GRAP Standards,
Guidelines and Directives are issued but not yet
effective. These standards, guidelines and Drectives
have not yet been implemented by EWSETA. An
estimation of their impact on EWSETA is outlined
below.
GRAP 25 Employee Benefits
This standard prescribes the accounting treatment
for employee benefits. The changes prescribed
from the currently applicable standards relate
mainly to the accounting requirements of defined
benefit plans. No effective date has been set for
this Standard yet, but the Standard will not have any
impact on the financial statements of EWSETA as
EWSETA does not have any defined benefit plans.
GRAP 104 Financial Instruments
This standard prescribes recognition, measurement,
presentation and disclosure requirements for
financial instruments and makes significant
modifications to the principles in the previous
standards applied in order to:
• simplify the recognition, measurement and
disclosure of financial instruments; and
• accomodate the types of financial instruments
entered into in the public sector.
The definitions of the various categories of financial
instruments in IAS 39 have been streamlined and
replaced which will require us to change our
accounting policy accordingly, and additional
disclosures will also be required.
No effective date has been prescribed for
implementation of the updates to the Standard.
Guideline on Accounting for Landfill Sites
The objective of he Guideline is to provide guidance
to entities that manage and operate landfill sites and
is thus not applicable to EWSETA.
Guideline on The Application of Materiality to
Financial Statements
The objective of this Guideline is to provide
guidance that will assist entities to apply the
concept of materiality when preparing financial
statements in accordance with Standards of GRAP.
Since EWSETA has historically applied the principles
in the Guideline, it is not expected to hve a material
impact on the financial statements of EWSETA.
Directive 14:Application of Standards of GRAP by
Public Entities That Apply IFRS Standards
This Directive applies to entities transitioning from
the IFRS reporting framework to GRAP. Since
EWSETA has always applied GRAP. the Directive will
not impact the financial statements of EWSETA.
1.26 NEWLY EFFECTIVE STANDARDS
GRAP 18 Segment Reporting
GRAP 18 Segment Reporting also became effective
during the current period, however, EWSETA
adopted the Standard early and therefore it has no
impact on the financial statements for the current
period. The Segment Reporting accounting policy
is included in the summary of significant accounting
policies.
IGRAP 20 on Adjustments to Revenue (and related
amendments to IGRAP 1)
IGRAP 20 on Adjustments to Revenue (and related
amendments to IGRAP 1) became effective during
the current period. EWSETA’s SDL is levied and
collected by SARS in accordance with the Income
TAX Act.
SARS has review process to assess if the levy
charged was correctly and completely charged/
declared in terms of the prescribed taxation and
levy rates. This may result in SARS itself identifying
that the levies collected needs adjustment. Levy
payers may also, through their own processes,
identify the need for such levy adjustments.
Through a declaration, appeal or objection process
undertaken in terms of legislation or similar means,
this may result in adjustments being passed to
levies already collected. Such adjustments may be
made up to seven years after the levy is charged
and/or collected. SARS passes all such adjustments
to levies through DHET to the relevant SETA. SARS
nets off such levy adjustments against current levy
receipts. EWSETA therefore receives its levies net of
all levy adjustments.
Adjustments to revenue already recognised, arise
from the completion of a SARS internal review
process, and/or the otcome of an external appeal
or objection process undertaken by levy payers.
Adjustments to revenueinclude any refunds that
become payable as a resul of the complete=ion of
a review, appeal or objection process. Refunds are
recovered directly from monthly revenues by SARS,
and the SETA recognises net revenue as and when
it becomes receivable. The SETA has no access to
the appeal or review process conducted by SARS,
and hence could not reasonably be expected to
have access to reliable information at the initial
recognition of the levy. The adjustments to revenue
already recognised in prior years, following the
outcome of a review, appeal or objection process,
are therefore accounted for as a change in an
accounting estimate, and not as a correction of an
error.
Revisions to accounting estimates are recognised in
the period in which the estimate is revised in future
affected periods. Such revisions of accounting
estimaes in terms of levy income are disclosed
in the analysis of levy income in the notes to the
financial statements.
Other Standards
The following Standards have become effective in
the current reporting period and will not have any
impact on the financial statements of EWSETA as
they are not relevant to EWSETA operations:
• GRAP 34 on Separate Financial Statements
• GRAP 35 on Consolidated Financial Statements
• GRAP 36 on Investments in Associates and
Joint Ventures
• GRAP 37 on Joint Arrangements
• GRAP 38 on Disclosure of Interests in Other
Entities
• GRAP 110 on Living and Non-living Resources
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102 A N N U A L R E P O R T 2 0 2 0 / 2 1 103A N N U A L R E P O R T 2 0 2 0 / 2 1 103A d a p t a b i l i t y t h r o u g h
ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
NOTES TO THE ANNUAL FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2021
2021 2020R’000 R’000
2. RECEIVABLES FROM EXCHANGE TRANSACTIONSTrade debtors 2 780 37 835Deposits 429 429Interest accrued 947 1 197Staff debtors 114 101
4 270 39 562
3. RECEIVABLES FROM NON-EXCHANGE TRANSACTIONSInterseta debtors 2 072 2 072Discretionary grant receivable 7 294 79 531
9 366 81 603
The entity also has a fully impaired Mandatory Grants Receivable of R6,300,010.44 (PY:R6,299,919.47). This represents Mandatory grant levy reversals due to EWSETA, that exceeds the Mandatory grants payables due to them. The receivable should be recovered against future payments of Mandatory grants. However, since these employers rarely qualify for the payment of Mandatory grants, the likelihood of recovery is remote. Therefore, the receivable is fully impaired.
During the current year, the entity impaired a receivable of R10,690,400 relating to a historical prepayment for services that was not received. The amount was reclassified to receivables in the prior period, as management had referred the matter for recovery via the courts, subsequent to a forensic investigation. The matter is undergoing a legal process.
4. PREPAYMENTSDiscretionary Grant prepayments 415 5 852Administration prepayments 305 223
720 6 075
5. CASH AND CASH EQUIVALENTSCash and cash equivalents consist of:Cash on hand - 1Bank balances 282 901 278 264Short-term investments/instruments 86 508 86 347
369 409 364 612
6. PROPERTY, PLANT AND EQUIPMENT
2021 2020
Cost R’000
Accumulated depreciation
and impairmentR’000
Carrying value
R’000Cost
R’000
Accumulated depreciation
and impairmentR’000
Carrying value
R’000Buildings - Work in progress 58 395 (36 465) 21 930 58 395 - 58 395
Furniture and fixtures 1 135 (435) 700 1 135 (344) 791Motor vehicles 667 (371) 296 667 (276) 391Office equipment 146 (77) 69 146 (67) 79Computer Equipment 3 909 (2 109) 1 800 3 449 (1 541) 1 908Total 64 252 (39 457) 24 795 63 792 (2 228) 61 564
Reconciliation of property, plant and equipment - 2021
Opening balance R’000
AdditionsR’000
Write-off R’000
Depreciation R’000
Impairment lossR’000
Total R’000
Buildings - Work in progress 58 395 - - - (36 465) 21 930Furniture and fixtures 791 - - (91) - 700Motor vehicles 391 - - (95) - 296Office equipment 79 - - (10) - 69Computer equipment 1 908 520 (42) (586) - 1 800
61 564 520 (42) (782) (36 465) 24 795
Reconciliation of property, plant and equipment - 2020
Opening balance R’000
AdditionsR’000
Write-off R’000
Depreciation R’000
Impairment lossR’000
Total R’000
Buildings - Work in progress 58 381 14 - - - 58 395Furniture and fixtures 916 17 (65) (77) - 791Motor vehicles 103 384 - (96) - 391Office equipment 111 - (20) (12) - 79Computer equipment 1 961 486 (18) (519) (2) 1 908
61 472 901 (103) (704) (2) 61 564
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104 A N N U A L R E P O R T 2 0 2 0 / 2 1 105A N N U A L R E P O R T 2 0 2 0 / 2 1 105A d a p t a b i l i t y t h r o u g h
ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
Pledged as security
No assets have been pledged as security or collateral
for any liability.
Details of property
EWSETA purchased the Cape House building at 15
McClaren Street, Marshalltown, Johannesburg for
R21,660,000 and capitalised R36,735,000 in respect
of renovations to the building. Therefore, the current
carrying amount of the building is R58,395,000.
The building has heritage certification, but has
been classified as property, plant and equipment
as it was intended for use as an administrative
asset. The building is included in the Administration
segment for segment reporting purposes. EWSETA
has experienced several contractual delays during
the renovation, but the building is currently
substantially complete. EWSETA has been unable to
take occupation of the building as it is awaiting the
final municipal approval for occupation. As such,
depreciation on the building has not commenced.
During the financial year, EWSETA considered
the costs, benefits and relative risks of occupying
the building as its office space. After extensive
consideration of alternatives, EWSETA decided to
dispose of the building. Per section 54 of the PFMA,
executive authority approval is required for disposal
of the building. This approval has not yet been
obtained and will be required before the transaction
can be concluded. As at the reporting date, the exact
disposal date and timeline is therefore unknown
and not directly within the control of EWSETA.
The decision to sell the building prompted EWSETA
to consider whether the building is impaired.
EWSETA contracted the services of an independent
valuer, who determined that the building has a fair
value of R24,000,000. The valuer determined the
fair value using the income approach. The valuation
was performed with reference to macroeconomic
factors in the property market and micro factors
such as the location, renovations and condition of
the property. Comparable commercial property
sales and rentals were also considered in arriving at
the valuation estimate.
After accounting for anticipated costs to sell
(anticipated agent’s commission), the building has
been impaired by R36,464,817 to a recoverable
amount of R21,930,000, which represents the
estimated fair value less costs to sell.
Other information
Repairs and maintenance of R16 000.00 were
incurred on PPE for motor vehicles in the current
financial year.
7. INTANGIBLE ASSETS
2021 2020
Cost R’000
Accumulated amortisation and
impairmentR’000
Carrying value R’000
Cost R’000
Accumulated amortisation and
impairmentR’000
Carrying value R’000
Computer software 5 210 (4 731) 479 5 210 (4 639) 571
Reconciliation of intangible assets - 2021
Opening balance R’000
Amortisation R’000
Total R’000
Computer software 571 (92) 479
Reconciliation of intangible assets - 2020Opening balance
R’000 Additions R’000Amortisation
R’000 Total R’000Computer software 519 173 (121) 571
2021 2020R’000 R’000
8. PAYABLES FROM EXCHANGE TRANSACTIONSTrade payables 3 663 3 787Payroll accruals 439 357Accrued expenses 1 156 1 553
5 258 5 697
9. PAYABLES FROM NON-EXCHANGE TRANSACTIONSInter SETA Payables 47 47Skills development grants payable-mandatory 32 326 30 586Skills development grants payable-discretionary 67 324 37 804
99 697 68 437
10. UNSPENT CONDITIONAL GRANTS AND RECEIPTSUnspent conditional grants and receiptsDepartment of Water and Sanitation 19 128 19 869Movement during the yearBalance at the beginning of the year 19 869 128 383Additions during the year 2 471 -Income recognition during the year (3 212) (3 514)Utilised for the payments of project expenses - (105 000)
19 128 19 869
EWSETA received funds from DWS that may only be utilised for the implementation of a specific training programme. The funds received in advance were recognised
as a liability and the revenue is recognised when corresponding expenditure has been incurred
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106 A N N U A L R E P O R T 2 0 2 0 / 2 1 107A N N U A L R E P O R T 2 0 2 0 / 2 1 107A d a p t a b i l i t y t h r o u g h
ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
11. PROVISIONSReconciliation of provisions - 2021
Opening Balance AdditionsUtilised during
the year TotalLegal proceedings 198 - (198) -Employer refund 837 7 043 (146) 7 734Performance bonus 2 151 747 (765) 2 133Discretionary grant 175 175 17 313 (65 051) 127 437Leave provisions 1 086 872 - 1 958
179 447 25 975 (66 160) 139 262Reconciliation of provisions - 2020
Opening Balance AdditionsUtilised during
the yearReversed during
the year TotalLegal proceedings - 198 - - 198Employer refund 913 23 - (99) 837Performance bonus 2 799 550 (1 198) - 2 151Discretionary grant 317 041 68 085 (209 951) - 175 175Leave provisions 2 271 43 (173) (1 055) 1 086
323 024 68 899 (211 322) (1 154) 179 447
The provision for employer refund relates to levies contributed by employers whose payroll is less than R500,000 (below threshold) per year. Provisions are raised for all
below threshold employers, but are only paid out to employers who submit a request in the prescribed form within 5 years. The entity does not know which employers
will approach it for a refund. As per National Treasury Circular no 9/2013, the SETA can transfer to Discretionary Reserves any amount that is due to the below threshold
employers which is older than five years.
The provision for performance bonus relates to performance bonuses still to be approved in accordance with the entity’s remuneration policy. As at the reporting date,
performance ratings had not yet been finalised and as such an estimate was made of the performance bonus payable based on individual’s provisional performance ratings
available at year end.
The provision for discretionary grants relate to bursary programmes and discretionary grant claims where supporting evidence has not been received yet at year end.
2021 2020R’000 R’000
12. NON-EXCHANGE REVENUEAdministrationLevies received from SARS 20 107 37 227Levy adjustment 2 613 (66)Levies from DWS 1 028 1 190InterSETA transfer-out - (3)Levies accrued 3 495 3 351
27 243 41 699Mandatory grantsLevies received from SARS 38 322 70 908Levy adjustment 4 083 (137)Levies accrued 6 637 6 381
49 042 77 152
Discretionary GrantsLevies received from SARS 95 220 176 098Levy adjustment 20 412 1 136Levies from DWS 2 057 2 381InterSETA transfer-out - (12)Levies accrued 16 703 15 920
134 392 195 523
Special project incomeSpecial projects-War on Leaks 3 212 3 514Special project-Central Energy Fund 1 939 -
215 828 317 888
Levy adjustments included in the levy income above represents increases/reversals of levy income recognised in prior years. SARS determines levy income through
the employee tax process. Adjustments to the levy income may arise from SARS own internal review processes or objections/appeal processes. SARS increases/
reverses the levies sent to the SETA, and pays the SETA current year levies net of all prior year reversals and/or additions. Such levy reversals or adjustments are treated
as changes in accounting estimates and adjusted propectively. The effect of the change in estimate on the current year is shown separately within revenue as Levy
adjustments. There is no effect of future periods. (Prior year presentation has been changed in line with current year presentation)
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ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
2021 2020R’000 R’000
13. EXCHANGE REVENUEOther income 106 143
14. INVESTMENT REVENUEInterest revenueBank 9 363 20 442
Interest revenue is earned from short-term investments and the positive bank balances on the entity’s current accounts.
Interest was earned on both the short term investments and positive bank balances at rate of between 3% and
6% throughout the year.
15. MANDATORY GRANT AND PROJECT EXPENSES
Mandatory grantsMandatory grant expenses 46 854 67 258Discretionary grantsDiscretionary grant expenses 151 457 181 159Project Administration expenses 15 570 18 276Qualification development 355 1 058External moderation 189 585Sector skills planning - 687Career guidance 540 1 356Research chairs 1 271 -
169 382 203 121
Special projectsSpecial projects - War on Leaks 3 212 3 514Special projects - Central Energy Fund 394 -
219 842 273 893
2021 2020R’000 R’000
16. GENERAL EXPENSESAccommodation 22 578Advertising 340 306Auditors remuneration 2 954 3 058Bad debts expenses - 6 310Bank charges 88 93Cleaning and facilities management 327 284Computer expenses 1 090 1 413Consulting and professional fees 6 139 9 152Document storage 347 568Entertainment - 31Forensic Audit Fees 531 2 697Governance committee fees 1 561 1 514Insurance 500 117Internal audit fees 1 456 1 749Office and printers rental 3 839 3 297Legal fees 339 942COVID 19 Expenses 694 -Marketing and communication 907 1 157Moving costs (2) 467Postage and courier 3 240Printing and stationery 843 1 410Promotions and sponsorships 174 1 071QCTO expenses 2 130 2 093Rates 218 546Security 928 830Small Assets 29 560Staff recruitment costs 532 267Staff welfare 105 326Licenses and Subscriptions 798 470Telephone and fax 611 738
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ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
2021 2020R’000 R’000
Training costs 998 664Travel 194 2 060Water and Electricity 285 594Workshop expenses 776 2 321
29 756 47 923
17. EMPLOYEE RELATED COSTSSalary and wages 20 081 19 113Bonus 765 1 249Medical aid - company contributions 269 283Unemployment insurance fund 120 126Skills development levy 290 392Leave expense 1 328 (966)Provident fund 2 038 1 771Other insurances 741 606
25 632 22 574
18. ACCUMULATED SURPLUS
Allocation of net loss to reserves - 2021
RevenueAdministration
ReserveMandatory Grant
ReserveDiscretionary
GrantsSpecial
ProjectsTotal per
Discretionary
Total Statement of Financial
Performance
Skills development levy: income 26 215 49 042 124 514 - 124 514 199 771Government levies 1 028 - 2 057 - 2 057 3 085Penalties and interest - - 7 820 - 7 820 7 820Investment income - - 9 363 - 9 363 9 363Special project income - - - 5 151 5 151 5 151Other income 106 - - - - 106Total revenue 27 349 49 042 143 754 5 151 148 905 225 296Administration expenses (29 756) - - - - (29 756)Employee costs (25 632) - - - - (25 632)Depreciation and amortisation (876) - - - - (876)Loss on disposal of assets (42) - - - - (42)Employer grants and project expenses - (46 854) (169 382) (3 606) (172 988) (219 842)Impairment loss (83 964) - - - - (83 964)Repairs and maintenance (21) - - - - (21)
(112 942) 2 188 (25 628) 1 545 (24 083) (134 837)
Allocation of net loss to reserves - 2020
Skills development levy: income 40 515 77 152 191 198 - 191 198 308 865Government levies 1 190 - 2 381 - 2 381 3 571Penalties and interest - - 1 938 - 1 938 1 938Investment income - - 20 442 - 20 442 20 442Special project income - - - 3 514 3 514 3 514Other income 143 - - - - 143Total revenue 41 848 77 152 215 959 3 514 219 473 338 473Administration expenses (47 923) - - - - (47 923)Employee costs (22 574) - - - - (22 574)Depreciation and amortisation (822) - - - - (822)Loss on disposal of assets (107) - - - - (107)Employer grants and project expenses - (67 259) (203 120) (3 514) (206 634) (273 893)Repairs and maintenance (114) - - - - (114)
(29 692) 9 893 12 839 - 12 839 (6 960)
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ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
2021 2020R’000 R’000
19. CASH (USED IN) GENERATED FROM OPERATIONSDeficit (134 836) (6 960)Adjustments for:Depreciation and amortisation 876 822Loss on derecognition of assets 42 107Impairment deficit 83 964 -Bad debts written off - 6 310Movements in provisions (40 186) (143 669)Changes in working capital:Receivables from exchange transactions (25 292) 1 318Other receivables from non-exchange transactions 24 730 184 500Prepayments 5 355 10 750Payables from exchange transactions (439) (1 565)Taxes and transfers payable (non-exchange) 31 260 (86 128)Unspent conditional grants and receipts (741) (108 514)
5 317 (143 029)
20. FINANCIAL INSTRUMENTS DISCLOSURE
Categories of financial instruments 2021At fair value At amortised cost Total
Financial assetsReceivables from exchange transactions - 4 270 4 270Receivables fron non-exchange transactions - 9 366 9 366Cash and cash equivalents 369 409 - 369 409
369 409 13 636 383 045
At amortised cost TotalFinancial liabilitiesPayables from exchange transactions 5 258 5 258Payables fron non-exchange transactions 99 697 99 697
104 955 104 955
At fair value At amortised cost Total2020
Financial assetsTrade and other receivables from exchange transactions - 39 562 39 562Other receivables from non-exchange transactions - 81 603 81 603Cash and cash equivalents 364 612 - 364 612
364 612 121 165 485 777
At amortised cost TotalFinancial liabilitiesTrade and other payables from exchange transactions 5 543 5 543Taxes and transfers payable (non-exchange) 68 284 68 284
73 827 73 827
Analysis of financial assets that are past due as at the end of the reporting period but not impaired
30-60 days 60-120 days More than 120 days Total2021 Receivables from exchange transactions 1 065 1 516 1 689 4 270Receivables from non-exchange transactions - - 9 366 9 366
1 065 1 516 11 055 13 636
2020
Receivables from exchange transactions 8 012 - 31 550 39 562Receivables from non-exchange transactions - - 81 603 81 603
8 012 - 113 153 121 165
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ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
Analysis of financial assets that are individually determined to be impaired as at the end of the reporting period
2021 More than 120 days TotalPrepayments 9 9Mandatory debtors 6 300 6 300Receivables from exchange transactions 36 808 36 808Receivables from non-exchange transactions 10 690 10 690
53 807 53 8072020Prepayments 9 9Mandatory debtors 6 300 6 300
6 309 6 309
21. COMMITMENTS
Authorised operational expenditure
Opening balance2020/21
RestatedAdjustments
2020/21
Additional commitments
2020/21Utilised
2020/21Closing balance
2020/21Discretionary GrantsAET Programme 125 - 500 (444) 181Apprenticeship Programme 1 068 892 (10 952) 34 265 (96 852) 995 353Bursaries 915 (720) - - 195Internship Programme 11 346 (2 021) 9 198 (5 986) 12 537Learnership Programme 35 063 (2 364) 3 520 (18 319) 17 900Trade Union - - 5 000 (1 000) 4 000Candidacy - - 225 - 225Skills Programme 9 202 (1 646) 13 180 (14 666) 6 070Research 554 - - - 554
1 126 097 (17 703) 65 888 (137 267) 1 037 015
Opening balance2020/21
RestatedAdjustments
2020/21
Additional commitments
2020/21Utilised
2020/21Closing balance
2020/21AdministrationHR Support and Training 364 1 571 1 148 (653) 2 430IT and Facilities Management 4 572 (1 701) 11 730 (4 874) 9 727Quality Assurance Support - - 980 - 980Marketing and Public Relation - 281 382 (92) 571Internal Audit and Risk Management 458 - 4 986 (1 495) 3 949Legal Services - - 999 (162) 837SCM Support - 1 750 (217) 534Secretarial snd Governance Support - - 1 354 (916) 438Finance Consulting 560 - - (519) 41Project Management - - 194 - 194Research - - 2 629 (604) 2 025Research Chairs 5 460 - - (623) 4 837
11 414 152 25 152 (10 155) 26 563
The above commitments relate to discretionary
grants and administration, with an exception of
an apprenticeship special project with a closing
balance of R873,254,250 included in the special
projects total commitment. The commitment
relates to the War on Leaks programme and is fully
funded by DWS. DWS is a related party.
* These are commitments that have been approved
by the Accounting Authority in 2020/21 financial
year. The award letters were accepted by the
implementing agents however the contracts
(Service Level Agreements) were not yet finalised at
year end.
22. CONTINGENCIES
Contingent liabilities
Mandatory Grants Regulation
In October 2019, BUSA won the court case against
DHET, where the department’s decision to decrease
the mandatory grant levies from 50% to 20% in terms of
section 4(4) of the SETA grant regulations was set aside.
The court, however did not decide on the mandatory
levy or grant percentage to be applied from the
court date onwards. The effect of the ruling is that
the Minister would have to decide on the percentage
for mandatory grants in consultation with the sector.
To date, the Minister has not yet made the decision
with regard to the mandatory grant percentage.
DHET continued to show the mandatory levies
portion as 20% in 2020/21 year in the levy download
information provided to the SETA. The SETA also
continued to pay and accrue mandatory grants at
20% in the 2020/21 financial year in the absence
of a revised percentage which was aligned to the
approved annual performance plan. The mandatory
grant expenditure - Note 15 and the mandatory
grant liability - Note 9 were calculated using a grant
percentage of 20.
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ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
The SETA therefore discloses a contingent liability in
regard to the amount of the mandatory grants payable
to qualifying levy payers from the date of the court
decision to the year end. This is disclosed as a liability
as the intention of the litigant, BUSA, was to increase
the mandatory grant percentage from 20. The timing
and amount of this contingent liability is uncertain
and no reasonable estimate can be made at reporting
date.The department is currently in discussions with
BUSA in regard to the mandatory grant percentage.
First time employer registrationsThe Skills Development legislation allows an
employer registering for the first time, 6 months to
submit an application for a mandatory grant.
At the reporting date, it is estimated that additional
mandatory grant expenditure of R39,973.50
(2019/2020: R226,968) will be payable to such
employers. This amount is contingent based on the
uncertainty of the number of submissions that will
be received and approved.
Surplus funds
All uncommitted surplus funds as at year-end may
be forfeited to the National Skills Fund should an
application for retention of surplus funds be denied.
An application to National Treasury and DHET for the
retention of uncommitted surplus funds will be made.
Contingent assets
• EWSETA has issued a summons against the
service provider for building refurbishment
done on the Cape House Property. The supplier
failed to deliver on services as per the service
level agreement. An amount of R15,955,415
which was paid in advance is claimable.
23. RELATED PARTIES
RelationshipsControlling entity DHETEntities under common control By virtue of the fact that EWSETA is a National Public Entity controlled by the
DHET, it is considered related to the SETAs, the QCTO and NSF, TVET Colleges,
Universities,ASSAF,CSIR,HSRC,NACI,NRF,SACNAS P,SANSA and TIA. The transactions are with
normal operating relationships between entities and are undertaken on terms and conditions
that are normal for such transactions. Where there were transactions and balances arising
due to the movement of funds between entities under common control of the DHET, these
amounts are disclosed below.Entities with a representative serving on EWSETA’s Accounting Authority
WISA (L.Goldman);NUM (N.Radebe);NUMSA (R.Ntlokotse); WITS (N.Malumbazo); Bloem Water
(L.Moorosi); SAMWU (D.Magagula);Members of the Accounting Authority L.Moorosi (Chairperson);L.Goldman;N.Malumbazo;D.Magagula; R.Ntlokotse;K.Pholoba;N.
Radebe;T.Wedderspoon;N. Nobatata;E.Coetzer;S.Bokaba;N.Ngidi;M.Malunga;H. Mhlongo;V.
Singh;M.MokgobinyaneMembers of key management M.Mookapele (CEO); R.Vilakazi(CFO); C.Moodley (CSE); T.Mokotedi (APRME)
2021 2020R’000 R’000
Related party balances
Amounts included in Trade receivable (Trade Payable) regarding related partiesDHET (7) 68FOODBEVSETA - 5LGSETA (23) 23MERSETA (5) 1 796PSETA - 55MQA (5) (5)SERVICES SETA (1) (1)W&R SETA (15) (15)MICT SETA - 36CETA 72 72Amounts included in Trade receivable (Trade payable) regarding members of the Accounting AuthorityF. Baleni - (39)V. Bikitsha - (18)L. Goldman (39) (48)N. Radebe - (40)S. Makume - (26)S. Manyama - (54)
Mandatory grants, discretionary grants and projects
Entities with a representative serving on EWSETA’s Accounting Authority
DWS 2 411 67 595ESKOM - (14 887)SAMWU - (78)WISA (28) (69)
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118 A N N U A L R E P O R T 2 0 2 0 / 2 1 119A N N U A L R E P O R T 2 0 2 0 / 2 1 119A d a p t a b i l i t y t h r o u g h
ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
EWSETA has, in the normal course of operations,
entered into certain transactions with entities which
had an appointed representative serving on the
EWSETA Accounting Authority.
The transactions above occurred under terms that
were no more or less favourable than those available
in similar arm’s length dealings. The transactions
disclosed exclude the transactions that relate to
statutory requirements.
Discretionary grants and projects comprise the
Pivotal Grant and project funding disbursed in
accordance with the priorities as defined in the
Sector Skills Plan. No guarantees have been given
or received. No expense has been recognised in the
current or prior year for bad or doubtful debts in
respect of the amounts owed by related parties.
2021 2020R’000 R’000
TVET AND UNIVERSITIESBOLAND COLLEGE - (57)ENHLANZENI TVET COLLEGE - (973)FALSEBAY COLLEGE - (14)SEKHUKHUNE TVET COLLEGE (1 753) (1 753)UMFOLOZI TVET COLLEGE - (141)UNIVERSITY OF JOHANNESBURG (126) (126)UNIVERSITY OF STELLENBOSCH - (45)WEST COAST COLLEGE (210) (210)CENTRAL UNIVERSITY OF TECHNOLOGY (69) -TECHNOLOGY INNOVATION AGENCY (192) -UNIVERSITY OF WITWATERSRAND (62) -GERT SIBANDE TVET COLLEGE
Related party transactions
Employers transferred to/(from) SETAs
(541) -
MERSETA - (4)CETA - (15)SERVICES SETA - (24)LGSETA - 3
2021 2020R’000 R’000
Fees and reimbursements-Members of the Accounting AuthorityF. Baleni (Outgoing Chairperson) - (133)L. Moorosi (Chairperson) - -M. Malunga (43) -N. Malumbazo (203) -D. Magagula (217) -L. Manamela - (3)T. Montoedi - (118)M. Kwena - (2)V. Bikitsha - (74)R. Ntlokotse (117) -L. Goldman (212) (154)N. Radebe - (190)S. Makume - (120)S. Manyama - (157)S. Musundwa (74) (54)J. Modise - (55)G. Mnguni - (65)S. Gumede - (55)C. Mokoena - (56)S. Thomas - (159)T. Tshitangano - (75)N. Mufamadi - (80)S. Bokaba (138) -M. Strydom (221) -L. Giba (71) -F. Docrat (71) -M. Mokgobinyane (13) -
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ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
2021 2020R’000 R’000
Project transactions (Trade payables/Trade receivables)
Entities with representative serving on EWSETA’s Accounting AuthorityBLOEM WATER 891 -DOE - 585DWS 70 000 92 986ESKOM 110 383 148 315WISA (261) (535)NUM (505) (300)SAMWU - (1 799)UMGENI WATER 3 322 -IMATU
TVET and Universities
(203) -
ADVISOR PROGRESSIVE COLLEGE (3 713) -CAPE PENINSULA UNIVERSITY OF TECHNOLOGY (1 061) (5 186)CAPRICON COLLEGE FOR FET - (119)CENTRAL UNIVERSITY OF TECHNOLOGY (845) (1 727)COLLEGE OF CAPE TOWN (2 376) (1 592)CTC COLLEGE (990) (5 888)TECHNICAL FURTHER TVET (750) -ESAYIDI TVET COLLEGE - (308)FALSEBAY COLLEGE (3 029) (39)GERT SEIBANDE TVET COLLEGE - (380)MALUTI TVET COLLEGE (186) (225)MOTHEO COLLEGE - (120)NELSON MANDELA METROPOLITAN UNIVERSITY - (74)NORTHERN TECHNICAL FURTHER UNIVERSITY - (406)TSHWANE UNIVERSITY OF TECHNOLOGY (878) -LETABA TVET COLLEGE 3 465 -FLAVIUS MAREKA TVET COLLEGE - (2)SOUTHWEST GAUTENG COLLEGE - (135)
2021 2020R’000 R’000
TALETSO TVET COLLEGE (4) (8)NKANGALA TVET COLLEGE (376) -ORBIT TVET COLLEGE (1 028) -UNIVERSITY OF CAPE TOWN - (125)UNIVERSITY OF FREE STATE (217) (207)UNIVERSITY OF JOHANNESBURG - (1 181)UNIVERSITY OF LIMPOPO (47) -UNIVERSITY OF SOUTH AFRICA (33) -UNIVERSITY OF NORTH-WEST (473) (49)UNIVERSITY OF PRETORIA (196) (1 112)UNIVERSITY OF STELLENBOSCH - (2 289)UNIVERSITY OF WESTERN CAPE (414) (614)UNIVERSITY OF WITWATERSRAND (502) (207)VAAL UNIVERSITY OF TECHNOLOGY (325) (1 101)WEST COAST COLLEGE (102) (134)WHITE RIVER TECHNICAL COLLEGE - (3 960)
23. OTHER TRANSACTIONS
QCTO (2 129) (2 093)
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ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
24. KEY MANAGEMENT INFORMATION
EXECUTIVE
Salary(R’000)
Other benefits (R’000)
Acting Allowances
(R’000)Total
(R’000)2021Chief Executive Officer 767 86 205 1 058Chief Financial Officer 884 180 38 1 102Chief Operating Officer (resigned 31/12/2020) 1 044 132 - 1 176Corporate Services Executive 1 339 177 - 1 516Acting Planning, Monitoring and Reporting Executive - - 322 322
4 034 575 565 5 174
2020 Acting Chief Executive Officer - - 352 352Chief Financial Officer 1 290 197 - 1 487Chief Operating Officer 1 164 395 - 1 559Corporate Services Executive 1 113 363 - 1 476Acting Chief Financial Officer - - 147 147Acting Planning, Monitoring and Reporting Executive - - 322 322
3 567 955 821 5 343
Other benefits include performance bonuses.
Several executive movements during the year impacted key management remuneration. The CFO position was vacant from 1 November 2020 to 28 February 2021.
The COO resigned and left the organisation on 31 December 2020 and the position has remained vacant since. The CEO was acting as such from the beginning of
the financial year until her permanent appointment on 1 November 2020.
Non-executive - Accounting Authority
Meeting fee(R’000)
Travel Costs(R’000)
Total(R’000)
2021Accounting Authority chairperson - - -Members 868 2 870
2020Accounting Authority chairperson 131 2 133Members 1 044 60 1 104
1 175 62 1 237
Accounting Authority sub-committees
2021 Audit and risk committee chairperson 220 1 221Members 283 6 289
503 7 5102020Audit and risk committee chairperson 158 1 159Members 151 4 155
309 5 314
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ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
25. RISK MANAGEMENT
Financial risk management
The entity’s activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and price risk),
credit risk and liquidity risk. The EWSETA has developed a comprehensive risk strategy in order to monitor and control these risks. The risk management process
relating to each of these risks is discussed under the heading below:
Liquidity risk
The entity’s risk to liquidity is a result of the funds available to cover future commitments. The entity manages liquidity risk through an ongoing review of future commitments.
Carrying amount 31-90 days 91 days and more Total2021 (R’000)Payables from exchange transactions (2 312) (554) (2 392) (5 258)Payables from non-exchange transactions (18 356) (4 092) (77 249) (99 697)
(20 668) (4 646) (79 641) (104 955)2020 (R’000)Payables from exchange transactions - - (5 543) (5 543)Payables from non-exchange transactions - - (68 284) (68 284)
- - (73 827) (73 827)
Credit risk
Credit risk consists mainly of cash deposits, cash equivalents, derivative financial instruments and trade debtors. The entity only deposits cash with major banks with high
quality credit standing and limits exposure to any one counterparty. Verification costs are settled in cash. Financial assets exposed to credit risk at year end were as follows:
Gross Impairment Total2021 (R’000) Receivables from exchange transactions 42 459 (38 189) 4 270Receivables from non-exchange transactions 20 056 - 9 366Cash and cash equivalents 369 409 (10 690) 369 409
431 924 (48 879) 383 0452020 (R’000)Receivables from exchange transactions 40 943 (1 381) 39 562Cash and cash equivalents 364 612 - 364 612Receivables from non-exchange transactions 81 603 - 81 603
487 158 (1 381) 485 777
Interest rate riskAs the entity has no significant interest-bearing assets, the entity’s income and operating cash flows are substantially independent of changes in market interest rates.
26. GOING CONCERN
The annual financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business. The SETA’s landscape period has been re-established to 31 March 2030.
The loss of revenue due to the 4 month skills development levy (SDL) payment holiday has not impacted the going concern of the entity.
27. FRUITLESS AND WASTEFUL EXPENDITURE
2021 2020R’000 R’000
Opening balance as previously reported 329 316Opening balance as restated 329 316Add: Expenditure identified - current 23 13Less: Amount written off - prior period (310) -Closing balance 42 329Details of incidentsTraffic fines and penalties 1 -Booking cancellations - 2Mobile data not utilised - 11Interest and recovery charges for late payment 15 -VAT overpayment 8 -
24 13
28. IRREGULAR EXPENDITURE
Opening balance as previously reported 379 252 210 549Opening balance as restated 379 252 210 549Add: Irregular Expenditure - current 11 068 29 694Add: Irregular Expenditure - prior period 1 908 139 009Closing balance 392 228 379 252
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ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
2021 2020R’000 R’000
Details of irregular expenditure - current year Non-compliance with SCM legislation 6 493 4 655Excess over 7,5% Project admin budget 4 234 25 039Non-compliance of Accounting Authority appointment 341 -
11 068 29 694Details of irregular expenditure - Prior yearNon-compliance with SCM policy 1 908 139 009
29. BUDGET DIFFERENCES
During the 2020/21 financial year, the outbreak of
COVID-19 prompted EWSETA to revise its budget.
The difference between the approved and final
budget reflects the budget updates in response to
the outbreak of the pandemic. The updates to the
budget was primarily driven by the following factors:
• The reduction in levy income due to the
4-month levy holiday afforded to employers.
• The anticipated reduction in levy income due
to the economic impact that COVID-19 would
have on the energy and water sectors.
• The expected impact of lockdown on the
various skills delivery interventions funded
by EWSETA, which would impact the rate at
which expenditure is incurred.
• The additional operating costs that would be
incurred due to the outbreak of the pandemic.
• The anticipated operating cost savings from
going into lockdown and not incurring certain
office and travel related expenses.
Material differences between budget and actual
amounts
a) The actual interest income received is lower
than year to date budgeted due to lower
bank balances and lower interest rates in the
current year. For the first several months in
the financial year, the SDL holiday reduced
levy income resulting in lower bank balances.
b) Special project income relates to the income
recognised as the War on Leaks project is
implemented. The income is not included in
the budget as it is recognized as per the project
implementation.
c) Levy income received is lower than budget
due to reduced hiring, retrenchments and
lower salary increments within the Energy
and Water sector. This was driven mainly by
poor economic conditions resulting from
COVID 19. Additionally, the SDL holiday
granted to employers reduced revenue to
below budget.
d) Interest and penalties were not budgeted as
it is anticipated that all employers would pay
levies on time.
e) Personnel costs is lower than budgeted due
to vacant positions within the entity. The
ongoing organisational redesign project
undertaken by EWSETA has impacted the
ability to recruit into vacant positions. f1)
Depreciation and amortisation are non-cash
items not included in the entity budget.
f) Impairment loss is a non-cash item and was
not included in the entity’s budget. Refer to
note on PPE for details of the impairment loss.
g) Rental for the premises is higher than
budgeted due to delays in completion of
purchase office building.
h) Administration expenses are lower than year to
date budget due to cost savings on several line
items as a result of lockdown restrictions.
i) Mandatory grant expenditure is lower than
budget as a result of the SDL holiday afforded
to employers, mandatory grant expenditure is
linked directly to SDL income.
j) Total DG expenditure includes cost of projects
approved in prior years, and expensed in the
current year as projects are implemented.
Due to the fact that the entity only budgeted
within the expected current year income,
expenditure for projects approved in the prior
year exceeded budget.
k) Special project expenses are not budgeted for
as they are fully recoverable from DWS and
CEF.
l) Cost saving by the entity to minimise
expenditure and preserve cash in response to
COVID 19 and the SDL holiday that reduced
revenue.
30. PRIOR PERIOD ERRORS
Amount previously
reported Prior period errorReclassification
error Restated amount
Statement of Financial Position
Receivables from Exchange transactions 50 252 - (10 690) 39 562
Receivables from Non-exchange transactions 70 913 - 10 690 81 603
Property, plant and equipment 61 576 (12) - 61 564
Payables from exchange transactions (5 543) (154) - (5 697)
Payables from non-exchange transactions (68 284) (153) - (68 437)
Provisions (179 292) (155) - (179 447)
Administration reserve 62 147 (12) - 62 135
Discretionary grant reserve 218 631 (462) - 218 169
Statement of Financial
Mandatory grant and project expenses (273 585) (308) - (273 893)
Administration expenses (47 770) (153) - (47 923)
Depreciation and amortisation (827) 5 - (822)
Deficit for the year (6 504) (456) - (6 960)
Administration expenses were understated in the prior year by R153,000.00 and this relates to invoices that were omitted from accruals in 2019/20. This error also
understated payables from exchange in the Statement of Financial Position.
Provisions were understated in the prior year by R155,000.00 and this relates to bursary invoices that were omitted from accruals in 2019/20. This error also
resulted in the understatement of project expenses.
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ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
Project expenses were understated in the prior year by R154,000 and this relates to invoices that were omitted from accruals in 2019/20. This error also
understated payables from non- exchange in the Statement of Financial Position.
Property, plant and equipment was overstated by an amount of R12,000.00 in the prior year and this relates to an asset lost by an employee during 2018/19.
Depreciation and amortisation was overstated by an amount of R5,000.00 in the prior year and this relates to an asset lost by an employee during 2018/19.
The discretionary grant and administration reserves have been amended accordingly to reflect the changes above.
Reclassification
Amountpreviously disclosed Reclassification Prior period error Restated amount
Receivable from exchange transactions 50 252 (10 690) - 39 562Receivable from non-exchange transactions 70 913 10 690 - 81 603
121 165 - - 121 165
An amount of R10.6 million was erroneously classified as receivable from exchange transactions. The reclassification did not change the net position of the Statement
of Financial Position but resulted in the reclassifiation between the accounts.
The following disclosure items were omitted from the prior period Financial Statements:
• Learnership Programme commitments of R1,286,000.
• Under risk management, R81,603,000 for credit risk relating to Receivables from non-exchange transactions.
• Under risk management, R68,284,000 for liquidity risk relating to Payables from non-exchange transactions.
• Related Party transactions of R2,093,000 with QCTO.
31. SEGMENT INFORMATION
Segment surplus or deficit, assets and liabilities
2021 Administration Mandatory grantsDiscretionary
grants Special projects TotalRevenueSkills development Levy Income 26 215 49 042 124 514 - 199 771Government levy 1 028 - 2 057 - 3 085Penalties and interest - - 7 820 - 7 820Investment income - - 9 363 - 9 363Special project Income - - - 5 151 5 151Other Income 106 - - - 106Total segment revenue 27 349 49 042 143 754 5 151 225 296Entity’s revenue 225 296ExpenditureAdministration expense 29 756 - - - 29 756Employee costs 25 632 - - - 25 632Depreciation and amortisation 876 - - - 876Impairment loss 83 964 - - - 83 964Loss on derecognised assets 42 - - - 42Mandatory grant and Project expenses - 46 854 169 382 3 606 219 842Repairs and maintenance 21 - - - 21Total segment expenditure 140 291 46 854 169 382 3 606 360 133Total segmental surplus/(deficit) (134 837)
AssetsReceivables from exchange transactions 4 270 - - - 4 270Receivables from non-exchange transactions - - 9 366 - 9 366Cash and cash equivalents 42 691 33 064 274 526 19 128 369 409Prepayments 305 - 415 - 658Property,plant and equipment 24 795 - - - 24 795Intangibles assets 479 - - - 479Total segment assets 72 540 33 064 284 307 19 128 409 039Total assets as per Statement of financial Position 409 039
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ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
ENERGY AND WATER SECTOR EDUCATION AND TRAINING AUTHORITY
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2021
2021 Administration Mandatory grantsDiscretionary
grants Special projects TotalLiabilitiesPayables from exchange transactions 5 258 - - - 5 258Payables from non-exchange transactions - 32 373 67 324 - 99 697Provisions 4 091 7 734 127 434 - 139 262Unspent conditional grants - - - 19 128 19 128Total segment liabilities 9 349 40 107 194 761 19 128 263 345Total liabilities as per Statement of financial Position 263 345
Other informationReserves at 31 March 2021 25 274 40 171 080
2020 AdministrationMandatory
grantsDiscretionary
grantsSpecial
projects TotalRevenueSkills development Levy Income 40 515 77 152 191 198 - 308 865Government levy 1 190 - 2 381 - 3 571Penalties and interest - - 1 938 - 1 938Investment income - - 20 442 - 20 442Other Income 143 - - - 143Special project Income - - - 3 514 3 514Total segment revenue 41 848 77 152 215 959 3 514 338 473Entity’s revenue 338 473ExpenditureAdministration expense 47 770 - - - 47 770Employee costs 22 574 - 16 395 - 38 969Depreciation and amortisation 827 - - - 827Loss on derecognised assets 107 - - - 107Mandatory grant and Project expenses - 67 259 186 417 3 514 257 190Repairs and maintenance 114 - - - 114Total segment expenditure 71 392 67 259 202 812 3 514 344 977Total segmental surplus/(deficit) (6 504)
2020 AdministrationMandatory
grantsDiscretionary
grantsSpecial
projects TotalAssetsReceivables from exchange transactions 39 562 - - - 39 562Receivables from non-exchange transactions - - 81 603 - 81 603Prepayments 223 - 5 852 - 6 075Cash and Cash equivalents 8 978 31 536 304 229 19 869 364 612Property, plant and Equipment 61 576 - - - 61 576Intangible assets 571 - - - 571Total segment assets 110 910 31 536 391 684 19 869 553 999Total assets as per Statement of financial Position 553 999LiabilitiesPayables from exchange transactions 5 543 - - - 5 543Payables from non-exchange transactions - 30 586 37 698 - 68 284Provisions 3 435 950 174 907 - 179 292Unspent conditional grants - - - 19 869 19 869Total segment liabilities 8 978 31 536 212 605 19 869 272 988Total liabilities as per Statement of financial Position 272 988
Other informationReserves at 31 March 2020 62 147 40 120 380
32. IMPAIRMENT OF ASSETS
ImpairmentsProperty, plant and equipment 83 964 -
Further disclosures related to this impairment loss are made in notes 3,4 and 6.
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ADDENDUM
PART F
The NDP calls for an improvement in the quality of education and training to enhance the capabilities of our people so that they are active participants in developing the potential of the country. The vision implicit in this is that by growing the economy faster, more people will be drawn into and will create work; thereby raising living standards for all, but particularly of the poor. The NSDP is informed by this vision and proposes that an understanding and determination of the demands of the labour market and of national priorities must be interpreted into appropriate interventions from education and training institutions
MRS GRACE NALEDI MANDISA PANDOR (FOREWORD TO NSDP 2030)
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INSTITUTIONAL PERFORMANCE INFORMATION REPORTING
PROGRAMME 1 / SUB-PROGRAMME: ADMINISTRATION
Outcome OutputOutput
indicator
Actual Performance
2019/20
Actual Performance
2020/21
Planned Actual Target 2020/21
Actual Achievement
2020/21
Deviation from planned
target to actual achievement for 2020/21
Reasons for deviations
Reasons for revisions to the outputs/
output indicators/
annual targets
Improved SETA performance and meet stakeholder needs
Strategic Plan and Annual Performance Plan
Approved Strategic Plan and Annual Performance Plan
Final Strategic Plan and Annual Performance Plan tabled in parliament by due date and approved by the Executive Authority
Target achieved Strategic Plan and Annual Performance Plan approved
Strategic Plan and Annual Performance Plan approved by the Minister on 24 March 2021.
- Target achieved N/A
SETA performance against plan
% of APP targets achieved
69% 68% 80% 68% -12% Target not achieved due to impact of lockdown restrictions on Post School Education & Training system. Occupationally directed training was negatively impacted as practical training and work-based training was halted due to limited access to training facilities and workplaces. A significant number of skills development providers could not continue with theoretical training during lockdown due to no capacity to host virtual training. Implementation of projects was therefore delayed and therefore projects were not completed as expected.
N/A
Quarterly SETA Good Governance report
No of SETA good governance reports
4 Quarterly SETA good governance reports submitted to DHET
Target achieved 4 SETA good governance reports
4 Quarterly SETA good governance reports submitted to DHET
- Target achieved N/A
PROGRAMME 1 / SUB-PROGRAMME: GOVERNANCE, AUDIT & RISK
Outcome OutputOutput
indicator
Actual Performance
2019/20
Actual Performance
2020/21
Planned Actual Target 2020/21
Actual Achievement
2020/21
Deviation from planned
target to actual achievement for 2020/21
Reasons for deviations
Reasons for revisions to the outputs/
output indicators/
annual targets
Compliance with statutory requirements
Audit Report AGSA audit opinion
Unqualified audit opinion in the 2019/20 financial year
Unqualified audit
Unqualified audit
NA NA NA N/A
InternalAuditStrategy
Approved internal audit strategy
N/A Achieved 5 months after targeted date
3–year rolling internal audit strategy approved by 30/06/20
Target not achieved
Achieved 5 months after targeted date
Appointment of a new outsourced internal audit service provider was delayed due to Covid-19-related restrictions on the open tender process. 3-year rolling plan was approved after EWSETA was able to appoint an outsourced internal audit function.
N/A
Strategic Risk Register
Approved annual risk plan
Strategic Risk Register approved by AA
N/A N/A N/A N/A N/A N/A
PROGRAMME 1/SUB-PROGRAMME: HUMAN RESOURCES / MARKETING & COMMUNICATIONS / INFORMATION TECHNOLOGY
Outcome OutputOutput
indicator
Actual Performance
2019/20
Actual Performance
2020/21
Planned Actual Target 2020/21
Actual Achievement
2020/21
Deviation from planned
target to actual achievement for 2020/21
Reasons for deviations
Reasons for revisions to the outputs/ output
indicators/ annual targets
Improved Operational Performance
Alignment of individual performance to organisational Performance indicators and Values
Signed Performance Contracts for all staff
All HR Strategy milestones for the year were achieved
Target not achieved
100% 97% -3% Target not achieved N/A
Evaluation of staff performance
Performance Evaluations conducted for all staff
50% Target achieved 100% 100% - Target Achieved N/A
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PROGRAMME 1/SUB-PROGRAMME: HUMAN RESOURCES / MARKETING & COMMUNICATIONS / INFORMATION TECHNOLOGY
Outcome OutputOutput
indicator
Actual Performance
2019/20
Actual Performance
2020/21
Planned Actual Target 2020/21
Actual Achievement
2020/21
Deviation from planned
target to actual achievement for 2020/21
Reasons for deviations
Reasons for revisions to the outputs/ output
indicators/ annual targets
Improved Operational Performance
Internal Skills Development
% implementation of a training and development plan that is aligned to the skills audit outcomes
All applicable staff performance evaluations were audited
Target not achieved
68% 35% -33% Target not achieved
Training was implemented and aligned to PDPs and skills audit outcomes with additional workshops such as Risk management. All staff participated in COVID-19 training before returning to work
NA
Source and partner with an organisational review consultant to initiate the project
NA Target achieved Source and partner with an organisational review consultant to initiate the project
Partner was sourced and project commenced in 2020/21
NA Target Achieved By end of 2020/21 the Draft Operating Model and Proposed Organisational Structure was completed. 2021/22 will see the approval by Accounting Authority and implementation plan roll out. Proposed Employee Engagement Strategy developed
NA
Employment equity report submitted to DoL
1 Target achieved 1 1 NA Target achieved NA
Positioning the EWSETA as a thought leader and skills development partner for the sector.
No of sector events and CEO Roadshows held
4 10 6 10 +4 Target achieved Access to the EWSETA LiveHub communication platform has enabled the EWSETA to engage with a variety of stakeholders on a wide range of topics.
The planned actual target of 10 was reduced to 6 due to COVID-19 lockdown and budget reductions as a result of the SDL holiday.
PROGRAMME 1/SUB-PROGRAMME: HUMAN RESOURCES / MARKETING & COMMUNICATIONS / INFORMATION TECHNOLOGY
Outcome OutputOutput
indicator
Actual Performance
2019/20
Actual Performance
2020/21
Planned Actual Target 2020/21
Actual Achievement
2020/21
Deviation from planned
target to actual achievement for 2020/21
Reasons for deviations
Reasons for revisions to the outputs/ output
indicators/ annual targets
Improved Operational Performance
Increased stakeholder awareness of and participation in EWSETA programmes.
Number of EWSETA publications / brochures.
9 7 7 7 - Target achieved The planned actual target of 8 was reduced to 7 due to COVID-19 lockdown and budget reductions as a result of the SDL holiday.
Digitisation of marketing and communication touch points
Development of communication app for mobile devices
NA Target Achieved EWSETA APP developed
Development of App concept and content outline
Development of App concept and content outline
Target Achieved The initial target had been the development of the APP, but this was changed due to the budgetary restrictions as a result of the SDL holiday.
Increased social media awareness and activity
Implementation of Social Media Operational Plan
NA Target achieved 20% increase in followers across all active social media platforms
NA 20% increase in followers across all active social media platforms
Target achieved
Average 428% increase across 5 social media platforms
NA
Improved ICT Management
Implementation of Reviewed ICT Strategy
Approved ICT Strategy2019/20 Operational Plan
Target achieved ICT Strategy Reviewed and approved
ICT Strategy Reviewed and approved
N/A Target achieved NA
Improved stakeholder engagement
Implemented EWSETA stakeholder portal and reporting dashboard.
Develop & design EWSETA ERP/MIS architecture
Target achieved Implemented EWSETA website and stakeholder portal.
Implemented EWSETA website and stakeholder portal.
N/A Target achieved NA
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138 A N N U A L R E P O R T 2 0 2 0 / 2 1 139A N N U A L R E P O R T 2 0 2 0 / 2 1 139A d a p t a b i l i t y t h r o u g h
PROGRAMME 1/SUB-PROGRAMME: HUMAN RESOURCES / MARKETING & COMMUNICATIONS / INFORMATION TECHNOLOGY
Outcome OutputOutput
indicator
Actual Performance
2019/20
Actual Performance
2020/21
Planned Actual Target 2020/21
Actual Achievement
2020/21
Deviation from planned
target to actual achievement for 2020/21
Reasons for deviations
Reasons for revisions to the outputs/ output
indicators/ annual targets
Improved Operational Performance
Minimisation of Business Downtime.
Implementation of the disaster recovery and business continuity plan
10% usage of MIS system
Target not achieved
100% 50% -50 Target Not Achieved
The delayed appointment of the Internal Auditors resulted in the IT Governance and Controls’ audit only being completed in Q4 and the findings were to inform the review of the DRP in order to close the identified weaknesses. This resulted in the development and implementation of the DRP not being finalised by the end of Q4. A COVID-19 Business Continuity Plan was developed and implemented during the year.
NA
PROGRAMME 2 / SUB-PROGRAMME: WORK SKILLS PLANS AND ANNUAL TRAINING REPORTS
Outcome OutputOutput
Indicator
Actual Performance
2018/2019
Actual Performance 2019/2020
Planned Annual Target
2020/2021
Actual Achievement
2020/2021
Deviation from planned
target to Actual Achievement
2020/2021
Reasons for deviations
Reasons for revisions to the outputs/
output indicators/
annual targets
Enhanced learning programmes for occupations in high demand
WSPs and ATRs approved for small firms
No of WSPs and ATRs approved for small firms
81 95 100 125 +25 Target Achieved Improved stakeholder engagement through various stakeholder interventions including, CEO roadshows; Skills Development Facilitators workshops; Focus Group Sessions and sector speaking platform resulted in improved employer participation
Not applicable. There were no revisions
PROGRAMME 2 / SUB-PROGRAMME: WORK SKILLS PLANS AND ANNUAL TRAINING REPORTS
Outcome OutputOutput
Indicator
Actual Performance
2018/2019
Actual Performance 2019/2020
Planned Annual Target
2020/2021
Actual Achievement
2020/2021
Deviation from planned
target to Actual Achievement
2020/2021
Reasons for deviations
Reasons for revisions to the outputs/
output indicators/
annual targets
Enhanced learning programmes for occupations in high demand
WSPs and ATRs approved for medium firms
No of WSPs and ATRs approved for medium firms
22 32 30 37 +7 Target Achieved Improved stakeholder engagement through various stakeholder interventions including, CEO roadshows; Skills Development Facilitators workshops; Focus Group Sessions and sector speaking platform resulted in improved employer participation
Not applicable. There were no revisions
WSPs and ATRs approved for large firms
No of WSPs and ATRs approved for large firms
12 22 20 23 +3 Target Achieved Improved stakeholder engagement through various stakeholder interventions including, CEO roadshows; Skills Development Facilitators workshops; Focus Group Sessions and sector speaking platform resulted in improved employer participation
Not applicable. There were no revisions
PROGRAMME 2/SUB-PROGRAMME: SECTOR SKILLS PLAN
Outcome OutputOutput
Indicator
Actual Performance
2018/2019
Actual Performance 2019/2020
Planned Annual Target
2021/2022
Actual Achievement
2021/2022
Deviation from planned
target to Actual Achievement
2021/2022
Reasons for deviations
Reasons for revisions to the outputs/ output
indicators/ annual targets
Enhanced learning programmes for occupations in high demand
Annual Sector Skills Plan
Sector Skills Plan reviewed and approved
Annual SSP 2019 – 2020 approved
Annual SSP 2020 – 2021 approved
Annual SSP 2021 – 2022 approved
The Sector Skills Plan was approved by the Minister on 24 March 2021
None Target achieved NA
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140 A N N U A L R E P O R T 2 0 2 0 / 2 1 141A N N U A L R E P O R T 2 0 2 0 / 2 1 141A d a p t a b i l i t y t h r o u g h
PROGRAMME 2/SUB-PROGRAMME: SECTOR SKILLS PLAN
Outcome OutputOutput
Indicator
Actual Performance
2018/2019
Actual Performance 2019/2020
Planned Annual Target
2021/2022
Actual Achievement
2021/2022
Deviation from planned
target to Actual Achievement
2021/2022
Reasons for deviations
Reasons for revisions to the outputs/ output
indicators/ annual targets
Enhanced learning programmes for occupations in high demand
Sector research agreements for TVET growth occupationally directed programmes
Number of sector research agreements signed for TVET growth occupationally directed programmes
N/A N/A 2 research agreements signed (energy + water)
2 research agreements signed (energy + water)
None Target achieved NA
Skills needs of established and emergent cooperatives
Identified skills needs of established and emergent cooperatives
N/A N/A 1 research project implemented
1 research project implemented
None Target achieved NA
Skills needs of small and emerging enterprises
Identified skills needs of small and emerging enterprises
N/A N/A 1 research project implemented
1 research project implemented
None Target achieved NA
Topical Research Studies
No of topical research reports
N/A N/A 1 research project implemented
1 research project implemented
None Target achieved NA
PROGRAMME 2 / SUB-PROGRAMME: MONITORING AND EVALUATION
Outcome OutputOutput
Indicator
Actual Performance
2018/2019
Actual Performance 2019/2020
Planned Annual Target
2021/2022
Actual Achievement
2021/2022
Deviation from planned
target to Actual Achievement
2021/2022
Reasons for deviations
Reasons for revisions to the outputs/ output
indicators/ annual targets
Improved organisational learning on performance of programmes
Results based M&E framework
Approved internal M&E framework
N/A N/A M&E framework developed
The M&E framework was not developed
M&E framework not developed
Target not achieved M&E Framework was not developed due to limited internal capacity. However, through the existing M&E System Development Plan the following M&E activities were conducted to ensure projects are monitored. Evaluations Studies (Impact & Tracer) and conducted four Project Monitoring Reports Developed
NA
Monitoring reports
4 quarterly monitoring reports submitted to DHET
4 4 4 quarterly reports
4 quarterly reports
None Target achieved NA
Evaluation reports
No of evaluation reports
1 Impact Study N/A 1 Impact Study Impact study conducted
None Target achieved NA
Tracer study reports
No of tracer study reports
1 Tracer study conducted
Tracer study conducted
1 Tracer Study Report
Tracer study conducted
None Target achieved NA
PROGRAMME 3 / SUB-PROGRAMME: LEARNING PROGRAMMES AND PROJECTS
Outcome OutputOutput
indicator
Audited Actual Performance
2019/20
Audited Actual Performance
2020/21
Planned Actual Target 2020/21
Actual Achievement
2020/21
Deviation from planned
target to actual achievement for 2020/21
Reasons for deviations
Reasons for revisions to the outputs/
output indicators/
annual targets
Increased access to occupations in high demand within the energy and water sector by 2024
25% of discretionary grant budget allocated to developing high level skills
% of discretionary grant budget allocated at developing high level skills
- Target achieved
25% SETA Funded: 28%
Non-SETA Funded: -
+3% Target achieved NA
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PROGRAMME 3 / SUB-PROGRAMME: LEARNING PROGRAMMES AND PROJECTS
Outcome OutputOutput
indicator
Audited Actual Performance
2019/20
Audited Actual Performance
2020/21
Planned Actual Target 2020/21
Actual Achievement
2020/21
Deviation from planned
target to actual achievement for 2020/21
Reasons for deviations
Reasons for revisions to the outputs/
output indicators/
annual targets
Increased access to occupations in high demand within the energy and water sector by 2024
60% of discretionary grant budget allocated to developing intermediate skills
% of discretionary grant budget allocated at developing intermediate skills
- Target achieved
60% SETA Funded: 48%
Non-SETA Funded: -
-12% Target not achieved NA
15% of discretionary grant budget allocated at developing elementary skills
% of discretionary grant budget allocated at developing elementary skills
- Target achieved
15% SETA Funded: 23%
Non-SETA Funded: -
+8% Target achieved NA
Number of learners in employment (Internships, Skills programmes, Bursaries, Learnerships completed)
Number of learners in employment (Internships, Skills programmes, Bursaries, Learnerships completed)
- Target not achieved
100 0 -100 Target not achievedProcesses to track and trace graduates that are employed in the current year was not finalised therefore no actual tracking exercise was conducted
NA
Number of people to be trained on entrepreneurial skills
Number of people to be trained on entrepreneurial skills
- Target not achieved
10 0 -10 Target not achieved. Training provider was appointed during the year to capacitate 20 entrepreneurs to roll our 4IR enabled solutions to solve water, energy and food security challenges. At year end, the appointment of potential entrepreneurs was not finalised.
NA
PROGRAMME 3 / SUB-PROGRAMME: LEARNING PROGRAMMES AND PROJECTS
Outcome OutputOutput
indicator
Audited Actual Performance
2019/20
Audited Actual Performance
2020/21
Planned Actual Target 2020/21
Actual Achievement
2020/21
Deviation from planned
target to actual achievement for 2020/21
Reasons for deviations
Reasons for revisions to the outputs/
output indicators/
annual targets
Increased access to occupations in high demand within the energy and water sector by 2024
Number of rural development projects initiated
Number of rural development projects initiated
- Target achieved
20 SETA Funded: 20Non-SETA Funded: -
- Target achieved NA
PROGRAMME 3 / SUB-PROGRAMME: LEARNING PROGRAMMES AND PROJECTS
Outcome Output Output indicator
Audited Actual
Performance 2019/20
Audited Actual
Performance 2020/21
Planned Actual Target
2020/21
Actual Achievement
2020/21
Deviation from planned
target to actual
achievement for 2020/21
Reasons for deviations
Reasons for revisions to the outputs/
output indicators/
annual targets
Increased skills capacity through workplace-based learning
Number of TVET students requiring work integrated learning to complete their qualifications place in workplaces
Number of TVET students requiring work integrated learning to complete their qualifications place in workplaces
- 0 50 0 -50 Target not met. Workplaces for placement of TVET students were identified and contracted with however students concluded their contracting outside the reporting period. Workplaces for placement of TVET students were identified and contracted with however students concluded their contracting outside the reporting period.
COVID-19 lockdown and Budgetary restrictions due to SDL holiday for employers
Number of TVET students completed their Work Integrated Learning placements
Number of TVET students completed their Work Integrated Learning placements
139 50 30 SETA Funded: 50
Non-SETA Funded: -
+20 Target achievedMore TVET students completed work integrated learning due to prior year students only completing their programme in the current year.
NA
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144 A N N U A L R E P O R T 2 0 2 0 / 2 1 145A N N U A L R E P O R T 2 0 2 0 / 2 1 145A d a p t a b i l i t y t h r o u g h
PROGRAMME 3 / SUB-PROGRAMME: LEARNING PROGRAMMES AND PROJECTS
Outcome Output Output indicator
Audited Actual
Performance 2019/20
Audited Actual
Performance 2020/21
Planned Actual Target
2020/21
Actual Achievement
2020/21
Deviation from planned
target to actual
achievement for 2020/21
Reasons for deviations
Reasons for revisions to the outputs/
output indicators/
annual targets
Increased skills capacity through workplace-based learning
Number of university students requiring Work Integrated Learning to complete their qualifications placed in workplaces
Number of university students requiring Work Integrated Learning to complete their qualifications placed in workplaces
21 50 SETA Funded: 21
Non-SETA Funded: -
-29 Target not achieved
Workplaces not available during lockdown period and therefore affecting completion of training
Number of university students completed their Work Integrated Learning placements
Number of university students completed their Work Integrated Learning placements
55 30 SETA Funded: 50
Non-SETA Funded: -
+25 Target achieved
More university students completed work integrated learning due to prior year students only completing their programme in the current year.
No of unemployed learners enrolled Internships
No of unemployed learners enrolled Internships
36 45 100 SETA Funded: 45
Non-SETA Funded: -
-55 Project awarded in Quarter 4 of 2020/21 but contracts were only signed by contracted learners after the end of the reporting period.
COVID-19 lockdown and Budgetary restrictions due to SDL holiday for
No of unemployed learners completed Internships
No of unemployed learners completed Internships
117 0 100 0 -100 Project awarded in Quarter 4 of 2020/21 but contracts were only signed by contracted learners after the end of the reporting period.
NA
No of unemployed learners enrolled skills programmes
No of unemployed learners enrolled skills programmes
308 635 250 SETA Funded: 573
Non-SETA Funded: 62
+447 Target exceeded due to partnership with industry to fund more learners on the solar water heating (SWH) project
COVID-19 lockdown and Budgetary restrictions due to SDL holiday for
PROGRAMME 3 / SUB-PROGRAMME: LEARNING PROGRAMMES AND PROJECTS
Outcome Output Output indicator
Audited Actual
Performance 2019/20
Audited Actual
Performance 2020/21
Planned Actual Target
2020/21
Actual Achievement
2020/21
Deviation from planned
target to actual
achievement for 2020/21
Reasons for deviations
Reasons for revisions to the outputs/
output indicators/
annual targets
Increased skills capacity through workplace-based learning
No of unemployed learners completed skills programmes
No of unemployed learners completed skills programmes
70 21 600 SETA Funded:
Non-SETA Funded: 21
-579 Target not achieved due to significant delays in the SWH project was not completed as planned due to COVID 19 restrictions
NA
No of unemployed learners enrolled Learnership programmes
No of unemployed learners enrolled Learnership programmes
1 313 309 250 SETA Funded: 265
Non-SETA Funded: 44
+59 Target achieved
No of unemployed learners completed Learnership programmes
No of unemployed learners completed Learnership programmes
1 380 1029 900 SETA Funded: 753
Non-SETA Funded: 276
+129 Target achieved
No of unemployed learners enrolled for candidacy programmes
No of unemployed learners enrolled for candidacy programmes
21 20 20 SETA Funded: 20
Non-SETA Funded: -
0 Target achieved NA
No of unemployed learners completed candidacy programmes
No of unemployed learners completed candidacy programmes
21 0 20 0 -20 Target not achieved
Candidacy Programme commenced late in the year and therefore not completed within the year under review
NA
No of workers enrolled Learnerships programmes
No of workers enrolled Learnerships programmes
458 250 250 SETA Funded: 152
Non-SETA Funded: 98
0 Target achieved
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PROGRAMME 3 / SUB-PROGRAMME: LEARNING PROGRAMMES AND PROJECTS
Outcome Output Output indicator
Audited Actual
Performance 2019/20
Audited Actual
Performance 2020/21
Planned Actual Target
2020/21
Actual Achievement
2020/21
Deviation from planned
target to actual
achievement for 2020/21
Reasons for deviations
Reasons for revisions to the outputs/
output indicators/
annual targets
Increased skills capacity through workplace-based learning
1 200 Workers completed Learnership programmes
No of workers completed Learnerships programmes
279 375 250 SETA Funded: 70
Non-SETA Funded: 305
-+125 Target achieved NA
No of workers enrolled Bursary programmes (new entries)
No of workers enrolled Bursary programmes (new entries)
34 15 50 SETA Funded: 15
Non-SETA Funded: -
-35 Target not achieved
Employers were awarded bursary funding to support workers, however a number of employees did not register with learning institutions
NA
No of workers enrolled bursary programmes (continuing)
No of workers enrolled bursary programmes (continuing)
- 4 30 SETA Funded: 4
Non-SETA Funded: -
-26 Target not achieved due to poor progress on currently issued bursaries to employers
NA
No of workers completed bursary programmes
No of workers completed bursary programmes
5 0 25 0 -25 Target not achievedTarget not achieved due to poor progress on currently issued bursaries to employers
COVID-19 lockdown and Budgetary restrictions due to SDL holiday for employers
No of workers enrolled skills programmes
No of workers enrolled skills programmes
1 340 801 800 SETA Funded: 790
Non-SETA Funded: 11
+1 Target achieved NA
No of workers completed skills programmes
No of workers completed skills programmes
955 1194 1 500 SETA Funded: 576
Non-SETA Funded: 718
-306 Target not achieved NA
No of workers enrolled AET programmes
No of workers enrolled AET programmes
50 50 50 SETA Funded: 50
Non-SETA Funded: -
0 Target achieved NA
PROGRAMME 3 / SUB-PROGRAMME: LEARNING PROGRAMMES AND PROJECTS
Outcome Output Output indicator
Audited Actual
Performance 2019/20
Audited Actual
Performance 2020/21
Planned Actual Target
2020/21
Actual Achievement
2020/21
Deviation from planned
target to actual
achievement for 2020/21
Reasons for deviations
Reasons for revisions to the outputs/
output indicators/
annual targets
Increased skills capacity through workplace-based learning
No of workers completed AET programmes
No of workers completed AET programmes
0 0 25 0 -25 Target not achieved
Late entry of learners into programme resulted in no completions
NA
Number of Federations /Trade Unions supported through the relevant skills training interventions
Number of Federations /Trade Unions supported through the relevant skills training interventions
5 5 SETA Funded: 5
Non-SETA Funded: -
0 Target achieved
Increased access to occupations in high demand
No of artisan learners enrolled
No of artisan learners enrolled
851 619 600 SETA Funded: 619
Non-SETA Funded: -
+19 Target achieved NA
No of artisan learners completed
No of artisan learners completed
652 720 600 SETA Funded: 706
Non-SETA Funded: 14
+120 Target achieved NA
No of unemployed learners enrolled bursaries (new enrolments)
No of unemployed learners enrolled bursaries (new enrolments)
337 72 150 SETA Funded: 72
Non-SETA Funded: -
-78 Target not achievedA large number of applications was received, however many learners that were awarded bursaries could not provide proof registration with universities due to extension of academic year that ended beyond 31 March 2021
COVID-19 lockdown and Budgetary restrictions due to SDL holiday for employers
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PROGRAMME 3 / SUB-PROGRAMME: LEARNING PROGRAMMES AND PROJECTS
Outcome Output Output indicator
Audited Actual
Performance 2019/20
Audited Actual
Performance 2020/21
Planned Actual Target
2020/21
Actual Achievement
2020/21
Deviation from planned
target to actual
achievement for 2020/21
Reasons for deviations
Reasons for revisions to the outputs/
output indicators/
annual targets
Increased access to occupations in high demand
No of unemployed learner bursaries (continuing)
No of unemployed learner bursaries (continuing)
NA 17 200 SETA Funded: 17
Non-SETA Funded: -
-183 Target not achievedA number of funded learners did not seek additional continuing bursary funding due to obtaining bursary funds from other funders.The extended academic year further affected reapplication
NA
No of unemployed learners completed Bursaries
No of unemployed learners completed Bursaries
247 42 100 SETA Funded: 42
Non-SETA Funded: -
-58 Target not achievedA high drop–out rate and shifting to other funders result in lower completion rate
NA
Learners enrolled for RPL/ARPL programmes
No of learners enrolled RPL/ARPL
100 10 10 SETA Funded: 0
Non-SETA Funded: 10
0 Target achieved NA
Learners completed RPL/ARPL
No of learners completed RPL/ARPL
- 17 10 SETA Funded: 9
Non-SETA Funded: 8
+7 Target exceeded to due to interventions funded by the industry
NA
TVET partnerships established
No of TVET partnerships established
9 2 5 SETA Funded: 2
Non-SETA Funded: -
-3 Target not achieved NA
HEI partnerships established
No of HEI partnerships established
6 5 3 SETA Funded: 5
Non-SETA Funded: -
+2 Target achievedThe country’s need to fund bursaries for the ‘missing middle’ resulted in more partnership with universities to fund energy and water related studies
NA
CET partnerships established
No of CET partnerships established
- 2 2 SETA Funded: 2
Non-SETA Funded: -
0 Target achieved NA
PROGRAMME 3 / SUB-PROGRAMME: LEARNING PROGRAMMES AND PROJECTS
Outcome Output Output indicator
Audited Actual
Performance 2019/20
Audited Actual
Performance 2020/21
Planned Actual Target
2020/21
Actual Achievement
2020/21
Deviation from planned
target to actual
achievement for 2020/21
Reasons for deviations
Reasons for revisions to the outputs/
output indicators/
annual targets
Increased access to occupations in high demand
SETA employer partnerships established
No of SETA employer partnerships established
15 12 5 SETA Funded: 12
Non-SETA Funded: -
+7 Target achievedImproved stakeholder engagement and the implementation of the revised partnership model resulted in the increased employer participation and skills development partnerships with employers
NA
Increased support for the growth of the public college system
SETA offices established and maintained in TVET colleges
No of SETA offices established and maintained in TVET colleges
- 4 5 SETA Funded: 4
Non-SETA Funded: -
-1 Target not achievedOnly one office was established during the year and other offices maintained. Due to less need for office based operational requirements during the year, there were no other offices established.
NA
CoS supported No of CoS supported
- 1 1 SETA Funded: 1
Non-SETA Funded: -
- Target not achieved NA
TVET lecturers exposed to the industry through skills programmes
No of TVET lecturers exposed to the industry through skills programmes
8 11 20 SETA Funded: 11
Non-SETA Funded: -
-9 Target not achieved due to Lecturer drop out from the course and non-attendance
NA
Number of Managers receiving training on curriculum related studies
Number of Managers receiving training on curriculum related studies
- 6 10 SETA Funded: 6
Non-SETA Funded: -
-4 Target not achieved due to Lecturer drop out from the course and non-adherence to training requirements
NA
TVET college lecturers awarded bursaries
No of TVET colleges Lecturers awarded bursaries
- 5 5 SETA Funded: 5
Non-SETA Funded: -
0 Target achieved NA
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PROGRAMME 3 / SUB-PROGRAMME: LEARNING PROGRAMMES AND PROJECTS
Outcome Output Output indicator
Audited Actual
Performance 2019/20
Audited Actual
Performance 2020/21
Planned Actual Target
2020/21
Actual Achievement
2020/21
Deviation from planned
target to actual
achievement for 2020/21
Reasons for deviations
Reasons for revisions to the outputs/
output indicators/
annual targets
Increased support for the growth of the public college system
TVET college infrastructure development (equipment/workshops)
TVET college infrastructure development (equipment/workshops)
- 1 1 SETA Funded: 1
Non-SETA Funded: -
0 Target achieved NA
CET college lecturers awarded bursaries
No of CET colleges lecturers awarded bursaries
- 7 5 SETA Funded: 7
Non-SETA Funded: -
+2 Target achieved NA
CET colleges infrastructure development support (equipment/ workshops/ Connectivity/ ICT)
CET colleges infrastructure development support (equipment/ workshops/ Connectivity/ ICT)
- 1 1 SETA Funded: 1
Non-SETA Funded: -
0 Target achieved NA
Number of CET Managers receiving training on curriculum related studies
Number of CET Managers receiving training on curriculum related studies
- 5 5 SETA Funded: 5
Non-SETA Funded: -
0 Target not achieved COVID-19 lockdown and Budgetary restrictions due to SDL holiday for employers
Number of CET learners accessing AET programmes
Number of CET learners accessing AET programmes
NA 0 0 0 0 NA NA
Increased economical participation of CBOs/ NGOs / NPOs / SMMEs within the energy and water sector
Co-operatives supported with training interventions funded
No of Co-operatives supported with training interventions funded
1 9 10 9 -1 Target not achieved NA
PROGRAMME 3 / SUB-PROGRAMME: LEARNING PROGRAMMES AND PROJECTS
Outcome Output Output indicator
Audited Actual
Performance 2019/20
Audited Actual
Performance 2020/21
Planned Actual Target
2020/21
Actual Achievement
2020/21
Deviation from planned
target to actual
achievement for 2020/21
Reasons for deviations
Reasons for revisions to the outputs/
output indicators/
annual targets
Increased economical participation of CBOs/ NGOs / NPOs / SMMEs within the energy and water sector
Small Business supported with training interventions funded
No of Small Business supported with training interventions funded
20 0 20 0 -20 Target not achieved
Project implementer appointed but selection process for small businesses to be trained and coached not finalised at year end
NA
Number of people trained on entrepreneurships supported to start their businesses
Number of people trained on entrepreneurships supported to start their businesses
- 0 5 0 -5Target not achieved
Project implementer appointed but selection process for small businesses to be trained and coached not finalised at year end
NA
Number of CBOs/ NGOs/ NPOs supported with training interventions or funded
Number of CBOs/ NGOs/ NPOs supported with training interventions or funded
3 11 5 11 +6 Target achieved NA
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152 A N N U A L R E P O R T 2 0 2 0 / 2 1 153A N N U A L R E P O R T 2 0 2 0 / 2 1 153A d a p t a b i l i t y t h r o u g h
PROGRAMME 3 / SUB-PROGRAMME: LEARNING PROGRAMMES AND PROJECTS
Outcome Output Output indicator
Audited Actual
Performance 2019/20
Audited Actual
Performance 2020/21
Planned Actual Target
2020/21
Actual Achievement
2020/21
Deviation from planned
target to actual
achievement for 2020/21
Reasons for deviations
Reasons for revisions to the outputs/
output indicators/
annual targets
Labour force that is updated with the current skills required for the sector
Career development events in urban areas on occupations in high demand
No of career development events in urban areas on occupations in high demand
- 27 15 27 +12 Target achievedThe lack of access to learners in 2020 due to the COVID-19 lockdown measures saw the EWSETA actively seeking partnerships with provincial Departments of Basic Education to enable the delivery of career guidance activities. During Q4, the EWSETA in partnership with the Department of Basic Education in Gauteng, was granted access to 5 schools in four different municipal districts in Gauteng. It is this activity that contributed to the additional achievement on this target
The initial target of 20 was reduced to 15 as a result of the lockdown measures that prevented access to learners, as well as a reduction in budget due to the SDL holiday
Career development events in rural areas on occupations in high demand
No of career development events in rural areas on occupations in high demand
- 37 10 37 +27 Target achievedDuring Q1 and Q2 there was minimal access to high school learners due to the lockdown measures in place. In Q3 and Q4 various provincial Departments of Basic Education approached the EWSETA to partner in the roll out of maths and science capacitation workshops for Grade 12 learners, career guidance for high school learners and Life Orientation Teacher workshops. EWSETA used the opportunities presented to make maximum impact.
The initial target of 15 was reduced to 10 as a result of the lockdown measures that prevented access to learners, as well as a reduction in budget due to the SDL holiday
PROGRAMME 3 / SUB-PROGRAMME: LEARNING PROGRAMMES AND PROJECTS
Outcome Output Output indicator
Audited Actual
Performance 2019/20
Audited Actual
Performance 2020/21
Planned Actual Target
2020/21
Actual Achievement
2020/21
Deviation from planned
target to actual
achievement for 2020/21
Reasons for deviations
Reasons for revisions to the outputs/
output indicators/
annual targets
Labour force that is updated with the current skills required for the sector
Career development practitioners trained
No of career development practitioners trained
- 112 80 112 +32 Target achieved
This target was achieved using a hybrid approach combining an online workshop and access to career development practitioners whilst rolling out career guidance activities in urban and rural areas
The initial target of 100 was reduced to 80 as a result of the lockdown measures, as well as a reduction in budget due to the SDL holiday
Capacity building workshops on career development services initiated
No of capacity building workshops on career development services initiated
- 11 6 11 +5 Target achievedDHET defines a Career Development Practitioner (CDP) as anyone in South Africa who in any way delivers career guidance services. Interaction with CDPs is achieved through any form of capacity building workshop and therefore any and all career development workshops hosted by the EWSETA has contributed to this target. Through partnerships with various Provincial Departments of Basic Education, the EWSETA was granted access to educators in both rural and urban areas for the purposes of career guidance capacitation
The initial target of 9 was reduced to 6 as a result of the lockdown measures, as well as a reduction in budget due to the SDL holiday
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154 A N N U A L R E P O R T 2 0 2 0 / 2 1 155A N N U A L R E P O R T 2 0 2 0 / 2 1 155A d a p t a b i l i t y t h r o u g h
PROGRAMME 3 / SUB-PROGRAMME: LEARNING PROGRAMMES AND PROJECTS
Outcome Output Output indicator
Audited Actual
Performance 2019/20
Audited Actual
Performance 2020/21
Planned Actual Target
2020/21
Actual Achievement
2020/21
Deviation from planned
target to actual
achievement for 2020/21
Reasons for deviations
Reasons for revisions to the outputs/
output indicators/
annual targets
Labour force that is updated with the current skills required for the sector
Capacitation of Educators on energy and water career paths
Number of Workshops for life orientation teachers in rural communities
- 7 3 7 +4 Target achievedDuring Q3 and Q4 the EWSETA partnered with various provincial Departments of Basic Education to deliver career guidance capacitation sessions for Life Orientation Teachers whilst in the provinces for science/maths capacitation workshops and career guidance for high school learners
The initial target of 5 was reduced to 3 as a result of the lockdown measures that prevented access to teachers, as well as a reduction in budget due to the SDL holiday
Increased awareness in rural communities
Rural Community advertising campaigns implemented
- 4 campaigns 2 campaigns 4 campaigns +2 Target achievedThe career guidance activities were targeted at delivering maximum impact within specific rural communities that allowed the EWSETA to communicate valuable career guidance information in a specific area
The initial target of 3 was reduced to 2 as a result of the reduction in budget due to the SDL holiday
PROGRAMME 3 / SUB-PROGRAMME: LEARNING PROGRAMMES AND PROJECTS
Outcome Output Output indicator
Audited Actual
Performance 2019/20
Audited Actual
Performance 2020/21
Planned Actual Target
2020/21
Actual Achievement
2020/21
Deviation from planned
target to actual
achievement for 2020/21
Reasons for deviations
Reasons for revisions to the outputs/
output indicators/
annual targets
Labour force that is updated with the current skills required for the sector
Number of career guides distributed
12 373 13244 10 000 13 244 3 244 Target achieved This target was achieved through using a ‘hybrid’ approach to sharing career guidance material. The EWSETA career guide is available as a PDF on the EWSETA website and downloads of the document were tracked. In addition, career guides were distributed at all rural and urban career guidance events undertaken in partnership with the Provincial Departments of Basic Education. Furthermore, the EWSETA tracked views of its career guidance audio-visuals available on the EWSETA YouTube Channel.
The initial target of 14000 was reduced to 10000 as a result of the lockdown measures that prevented access to learners, as well as a reduction in budget due to the SDL holiday
PROGRAMME 4: QUALITY ASSURANCE
Outcome Output Output indicatorActual
Performance 2019/20
Actual Performance
2020/21
Planned Actual Target
2020/21
Actual Achievement
2020/21
Deviation from planned
target to actual
achievement for 2020/21
Reasons for deviations
Reasons for revisions to the outputs/
output indicators/
annual targets
Updated qualifications that are aligned to the current skills training needs
Workplaces approved for workplace training
No of workplaces approved
31 3 15 3 -12 No workplace approval requests were received during the lockdown period. Approval of new projects that started during the year affected the number of requests for workplace approvals
No application were received for workplace approval
156 A N N U A L R E P O R T 2 0 2 0 / 2 1
PROGRAMME 4: QUALITY ASSURANCE
Outcome Output Output indicatorActual
Performance 2019/20
Actual Performance
2020/21
Planned Actual Target
2020/21
Actual Achievement
2020/21
Deviation from planned
target to actual
achievement for 2020/21
Reasons for deviations
Reasons for revisions to the outputs/
output indicators/
annual targets
Updated qualifications that are aligned to the current skills training needs
100 % of applications for certificate received and processed within 30 days
% of applications for certificate received and processed within 30 days
100% 62% 70% 62% -8% Lack of adequate subject matter experts resulted in backlog of certification application
No site visits conducted, learner POE’s had to be courier to the EWSETA offices
Qualifications developed as per industry needs.
No of qualifications developed as per industry needs.
2 2 2 0 Target achieved NA
QAS addendum are developed for registered qualification
No of QAS addendum developing on the registered qualifications
- 2 2 2 0 Target achieved N/A
WESTERN CAPE & EASTERN CAPEFalse Bay TVET CollegeWestlake Campus, Westlake DriveWestlakeCape TownTel: +27 21 701 0582 NORTH WEST (BRITS)Orbit TVET CollegeBrits CampusReitz Street NorthBritsTel: +27 12 381 5700/58
NORTH WEST (MAHIKENG)Taletso TVET CollegeLeah Mangope Highway(Between Lehurutshe Fire Station And Hospital)MahikengTel: +27 18 363 4124 FREE STATE PROVINCIAL OFFICEMotheo TVET CollegeCorner St Georges And Aliwal StreetsBloemfonteinTel: +27 51 406 9481/9391
32 Princess of Wales TerraceGround Floor, Building BSunnyside Office ParkParktownJohannesburg2198
+27 11 247 [email protected]
www.ewseta.org.za
STAKEHOLDERS PLEASE NOTE:
As from 1 September 2021, the EWSETA will be situated at:
22 Wellington AvenueParktown
(Next to Parktown Boys High School)
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